@Justin Cooper I would investigate using a S-Corp for wholesaling as there are a few tax advantages compared to a LLC for short term holdings - ie. Some of your profits can be treated as distributions and avoid FICA tax. Check with a CPA in your area, and even if they charge you $250 for an hour to discuss your options it could save you big money over your first few deals.

@Justin Cooper actually ask your CPA about an LLC with an s-corp election for taxes. Why? Because an S-corp is still a corporation, and I believe it has more stringent requirements on the formality side than an LLC, I would ask about that.

@Dave Savage undefined. Thanks a lot for the input, I really appreciate the insight. We decided to go down the S-Corp road after doing the necessary research, so it's heartening to see it might have been the correct choice (pending CPA's discussion of it). Thanks again.

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Updated over 10 years ago, 08/18/2014

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Justin CooperPoster

Banker
Dallas, TX

Wholesaling

LLC for Wholesaling?

Justin CooperPoster

Banker
Dallas, TX

Posted August 05, 2014 09:53

Curious about whether some of you have started an LLC for your wholesaling business and what you're logic was behind doing so? Also, are there any drawbacks or legal ramifications? Thanks in advance all.

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