LLC for Wholesaling?

[Justin Cooper]

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.

[Dave Savage]

@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.