llc for my flips in Florida

[Ron Alexander]

Hello everyone,

I am sure this have been said before but I really wanted to get details on a few personal request about it,

I do have an investment house I bought 3 months ago (A), I am going to flip it very soon (it is on my personal name)

I am looking to buy another home (B) this week that I am going to flip as well,

My question is that I want obviously to separate the assets and get a good protection so any eventual problems that happens on A cant affect B

I do have an LLC which is inactive because I never really used and opened it a few years ago thinking I would use it but didn't at the time, ok now lets say that I reactivate this LLC,and want to purchase property B with it, what should I do in order to get the right protection,I mean I 've heard that it needs to be linked to a separate bank account,payed for taxes, work being done to the house etc only with money from the account linked to the LLC,but my question is? what do I have to do, just go to my bank and ask top open another account for the LLC?how do I fund this account in order to buy the property?If I wire from my personal bank account into this new account wouldn't this remove all the benefits of an LLC?I will be the only member,Is this how it works? many thanks!

PS : ALSO WOULD YOU REACTIVATE AN OLD NEVER USED LLC OR CREATE A NEW ONE ? I was thinking it would be better for credit history to have an llc that was created a few years ago even if it never was used, maybe I'm wrong

[Kristin Kiddy]

In terms of funding the LLC to purchase a property, if you need to use personal funds, you should write a promissory note from the LLC to you the person which includes a very small interest amount charged (1% or less ok) and a payment plan to pay back the money.

As for opening a bank account for the LLC, it is very easy, just go to the bank. I recommend a smaller bank or credit union as they are easier to deal with.

Your biggest challenge will be avoiding the whole single member LLC issue, which I am sure you have investigated. Single member LLCs are very exposed to liability. There are some different options to remedy this situation, but the solutions come with their own tax filing complications. I will let someone else get into the details there.