Corporate Structure Strategy - Thoughts?

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Hi all,

I've mainly focused on fix and flips over the last couple of years but am currently moving into more of a hold and rent strategy. I'm looking to discuss corporate structures with a local attorney but have been unable to find the right one at this point, so wanted to seek advice from the BP community.

My strategy is as follows:

1. Continue to fix and flip, but only ever undertake 1 at once

2. Sequentially purchase multiple buy and holds, mainly focusing on commercial buildings, again one at a time.

I'm keen to get perspective on the right number of entities to establish for both adequate protection and maximizing tax benefits. I'm currently thinking:

1. One sole member LLC for all fix and flips. By only ever undertaking 1 flip at a time, there wouldn't be a need for multiple LLC's on this side of the equation as we'd be out of one property before purchasing the next to minimize risk.

2. With the buy and hold side, would 1 entity be sufficient for purchasing and operating multiple commercial buildings, or would you suggest having 1 entity per building? The average commercial building will be 4,000-7,000 sq ft, zoned as office/commercial only. A large umbrella policy would be taken out for extra coverage prior to purchasing the first building.

Interested to obtain thoughts on whether a parent LLC or Delaware Series LLC would be beneficial, or whether my thinking above on one LLC for residential flips and one for commercial will provide adequate coverage.

Thanks in advance for your thoughts

Michael