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Updated about 6 years ago,
Help please unique llc vs scorp dilemma
I am newly self employed after leaving my w-2 job and benefits to flip houses and dive into multi family. Due to circumstances I ended up making this move sooner than I planned so long story short I now need to utilize the house flipping for living income.
My problem starts with health insurance which I need because of medical reasons and need to stay on BcBs. My insurance people told me to file a 941 under my llc which has been inactive but I have kept it in good standing. By doing this it would allow me to stay with BcBs on a group of one plan.
I told my accountant that my insurance gal wanted us to do this on Jan one so I could get enrolled. He basically said it was way more hassle than it was worth because of the extra filings because it makes me an scorp now.
I also asked my accountant during another visit about being taxed as an s Corp instead of a llc because of the volume of flips (something I read on BP) and he said again that it’s more work than it’s worth.. I expect to make a minimum of 80k flipping annually if the world doesn’t go down the drain.
I’m asking if this is as big of hassle as what my accountant is telling me or have any other advice you can share?