Filing EIN confusion.

[Gordon S.]

Hey everyone, 

EIN filing time for my single member LLC. My attorney was so kind to include some documentation about filing for the EIN...but alas my simple mind cannot figure out this quote for some reason. Or maybe I've not had enough coffee yet!

"So should your entity make an S Corp. election rather stick with the default position of a

disregarded entity? It depends. Dallas CPA XXXXXXX advises as follows: “If the IRS

considers the client as dealer (doing this business for their livelihood), then their business income

is subject to self-employment tax. The S Corp election can be used to minimize that. If classified as

a dealer, none of the gains are considered capital gains. It's all considered ordinary income, subject

to the tax rate the individual is in, plus self-employment tax. I usually recommend this for people

flipping property on a regular basis.” 

This is the IRS website selection:

So my plain and straight forward question (hopefully) is if I'm going to flip properties then register the EIN as a single member LLC but elect S-Corp (form 2553) status for maximum tax benefits for flipping?

Thanks in advance.

[Steven Hamilton II]

You will select LLC, single member.

THEN AFTER YOU GET THE EIN

You will have to file Form 2553 within 2.5 months of the opening of your LLC.