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Updated almost 8 years ago,

User Stats

376
Posts
114
Votes
Matthew B.
  • Investor
  • Howey in the Hills, FL
114
Votes |
376
Posts

Entity Structure for Flipping - Operating Company?

Matthew B.
  • Investor
  • Howey in the Hills, FL
Posted

I've had several attorneys and CPA's mention that house flippers should treat LLC's as disposable - that is, flip a set amount of houses with an LLC and then create another LLC and let the previous one dissolve.

The problem with this is that it's hard to build any sort of long term brand when the name of the company changes.

I've done a lot of reading on this site and others, and I'm wondering if an entity structure that involves an operating company would be the solution. 

That way, you could have the operating company be the face of the brand, and then form as many LLC's as you need to actually hold the properties - all of them owned by the operating company.

Is this a viable option to build a long term company or is there a better, easier way?

I'm not exactly sure how the money is supposed to flow from the operating company to the other LLC's and vice-versa. I'm hoping to get some advice from attorneys, CPA's, or flippers who have experience with this.

BTW, I'm not a new guy who's stuck on the color of a logo and getting t-shirts printed, so save the "just go do a deal" comments, please :)

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