Should i open a Corporation to purchase a house to flip?

[Kenye Serna]

Im planning to invest in a house to flip, having as an investors, myself, a friend and her mother, should i open a corporation to purchase the house?  Should i put the house only under my name since they are not US Citizens neither live in the US? BiggerPockets friends which is the best option?

Thanks!

[Aaron Merriman]

Hi @Kenye Serna you don't need to go through the time and expense to setup a Corp to flip a house. The most I would do is setup an LLC and entitle the property in the LLC's name if you feel like you need the additional protection against possible lawsuits.

If you have considerable personal assets you want to protect, I would setup the LLC, otherwise keep it simple and put everything in your name. I would however make sure you have good documentation so you and your investors are clear on what they are investing, how the profits, cash flows, etc will be disbursed.

Hope that helps.

Aaron