Best business structure to allow for flexible fund raising?

[David Jiang]

Hello everyone,

I want to pick the minds of experienced flippers on this topic. I've been doing rehabs in my area for three years now and I've gained enough traction and experience where family, friends, and even local agents want to know if they can partner with me financially on some of my flips. 

I personally would love to take on more projects that I currently just don't have the funds to do. But I want to be financially responsible with other people's money as well as legally protect myself. So the question is, what is the best business structure that will allow for quick, flexible fund raising on a project to project basis while providing proper legal protection for all parties involved?

I've been told differing advice in the past. Some have suggested establishing a Limited Partnership and making myself GP while everyone else is an LP. Others have suggested setting up an S-corp and selling shares for each project. What's the right answer? Which one is the easiest and cheapest to maintain when it come to tax season?

Thanks for the advice as always!