Corporate Tax vs Ordinary Income on Flips

[Andrew Remke]

Let me start by saying I have hired a CPA, and have a future meeting set up. I also appreciate multiple voices on projects I am taking on. I am looking at establishing a new single-member LLC. I have 200k in private money. I have a close friend who has been doing fix and flips for four years and wants to work together, just not as an owner. She is an experienced flipper, a real estate professional and a great designer, but wants nothing to do with tax strategies and securing funding. She also dislikes meeting contractors in sketchy neighborhoods alone as a woman and would like a partner in this game.

The plan for each house that we work on together is that at the end of each project, we split the money three ways. 1/3 toward the designer/real estate professional, 1/3 toward the private money lender, and 1/3 for myself.  

My thought was to 1099 the friend for her part in the projects, as well as assess how the dynamic is working between projects. 

Then reinvest all the profits for myself and the money lender until we reach a future goal ($600K).

The question is, if the money stays within the LLC then I assume that I am paying roughly 20% corporate tax on all profits from each project. Then if/when I pay myself in the future I would also be paying ordinary income tax on what I receive. Is that correct? This seems like I am paying 20% now and 20% later. What am I missing?

Like everyone, I am just trying to think through my absolute best strategy to grow wealth. Thanks for your insights.