Should I form an LLC for my rental that became a flip?

[Paulus Anglada]

I have 2 rental properties in Rock Hill, SC and bought a third one last month planning on keeping it as a rental. Turns out that I found out that I can make a $60K+ profit if I flip it. 

I bought in my personal name. Since I was only planning on forming an LLC after my 4th rental.

Should I go ahead and form 2 LLCs? One for the flipping business and one for the Rentals?

Can anybody recommend a good real state friendly CPA in the Charlotte, NC area?

Thanks,

Paulus

[Matthew Kreitzer]

There are some more considerations at play here than the tax treatment, although an important part of the equation. Generally speaking, an LLC can elect to be an S Corp, the two are not mutually exclusive. Some other considerations you may want to take into consideration is how much time and effort you want to place into the management of your LLC. LLCs offer great protection from liability for rentals, but require significant amounts of reporting and upkeep. This could eat into your profit margins. It is ultimately up to you, after consulting with a local attorney licensed to practice in your state, to decide the best style of incorporation for your work. There are more options than LLC as well out there to consider. Food for thought.