I'm sure stumped...

[Josh P.]

I've read that its best to flip houses through an S-corp since money made from flips counts as ordinary income.

Problem is, the only business entity I have is the LLC used to hold my buy and hold properties.

This is mainly because I haven't flipped a single house, and don't intend to until I've added a few more layers to my education.

If I start establishing business credit in the name of the LLC I'm using to hold my buy and hold properties, how will that help with my possible future flipping business?

Should I form an s corp and begin building business credit now even though I have not and may never flip any houses?

What entity should I use to establish business credit if I wish to use it both for my buy and hold business and an eventual flipping business, or should I establish separate business credit profiles for each entity?

Sorry for the length of this post. Any genius insights are appreciated.

[Ned Carey]

Josh, It probably doesn't matter. Anyplace you are likely to get credit will look at your whole picture. They will look at you personally for your credit score as well as your experience, which would include any and all companies you own.

It might make it easier to get a credit card by "seasoning" a company for a year before you need it. But any banker you sit down with, that is going to give you a real line of commercial credit, isn't going to be fooled by such gimmicks.

The cost of maintaining that company that you mar or may not even use in the future probably isn't worth it.