Taxes and Legal Structure Questions

[Steven Rhodes]

Hello Everybody, I am a newbie in RE. After conducting some research, I have decided to begin my real estate journey by wholesaling. I do understand the process but there are two topics of interest that I have not yet heard discussed about, for someone like me who is just starting out, that I would like some insight on: 1. When you take your profit after the double escrow, what records must you create/hold/archive to report that profit to the IRS and should I set some of that profit aside, just in case, to handle any tax burden that might arise? 2. Should an individual investor create a legal structure (sole proprietor, LLC, etc) before making that first deal or is it ok to engage in wholesaling solely as an individual investor; provided you maintain the proper records needed to file taxes to the IRS? Thanks in advance for any insight you can provide on this issue as it is the only concern, that I have, that is really holding me back from taking the plunge into wholesaling.