Flips that turn into holds
What is the best entity structure for a business that buys then sometimes holds and sometimes flips? It's not always easy to know ahead of time if you are going to keep or flip. So it would be nice to just have both flips and holds in the same entity. I don't object to owning in my personal name but this is a partnership and it's best I think to have a more formal structure.
The conventional wisdom is to flip in a S-Corp and hold in a LLC, but it's a pain to have two entities, especially in CA.
It's not talked about much but I'm thinking of a LP (Limited Partnership). What's neat about that is that it avoids the gross revenue tax that is imposed on CA LLC's (even if you lose money on a flip you pay taxes on the gross revenues from the sale). I'm just not sure it' wise to flip and hold in the same entity.
I will eventually talk with a legal/tax pro so don't worry about giving advice. I'm just trying to get ideas.