Exciting things are happening in Q4 this year. I'm getting into my first house flip and I plan to sell it by March-April of next year. I have a few properties lined up for me and I'm going to go do my walkthroughs this weekend. The next steps are putting in an offer and organizing financing. I have some of it figured out, but I definitely don't have everything nailed down. For anybody who has flipped a house or organized a partnership, I have a few questions.

1.) Before forming a partnership, and possibly before obtaining financing, should I form an LLC/S-corp? What are the benefits of forming an LLC/S-corp? My partner and I are not going to be in business together for this first deal. Do we both need to form separate LLC's and then when we sign the house, we put both of our LLC's down?

2.) As far as taxes go: I know individuals who flip houses get taxed out the a**. There's capital gain tax, SS tax, Medicare tax (and possibly more I don't know about. Please list if you can think of any). This all totals around 40%-60% of the profit (I think). If I set up my LLC and then tax it as an S-Corp I think that this will reduce the tax, but to what percent? I'm trying to see if it's worth it to set up the LLC

3.) I will be getting in touch with a tax professional this week and I'm coming up with a list of questions/topics to talk to them about. I was referred to them by a friend and I want to make sure that they're knowledgeable about real estate and business. Are there any questions/topics that I should ask them to clarify for me (besides the ones I already asked)? How do you know if a tax professional is good?

Well I know that was a lot of questions. As you can see, when it comes to the tax side of things, I am pretty uneducated. On the business, management, and construction side I would give myself an A or a B. When it comes to tax strategies I am about a D or an F haha!

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