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Updated over 4 years ago,
S corp questions - two LLCs
Hello,
I've created two LLCs based on the direction from my accountant. One is filed as an s-corp, the other is not.
The s-corp LLC has a contractor's license and insurance, I intend to use it for flipping and possibly new construction. The other LLC is for buy and hold.
What's confusing me is the interaction between the two. From what I'm reading, the s-corp is best for flipping, but my accountant is suggesting that I buy all properties, regardless of what I intend to do with them under the standard LLC and do the work on the properties via the s-corp llc if I am flipping them. That way, if I end up changing my mind or for whatever reason holding the property I'm not stuck with it in the s-corp.
Does that make sense?
For you that do that, do you just keep all the buy/sell related expenses and such in the standard LLC and have the s-corp invoice for the repair work? Seems clunky to me.