There's no canned answer for this, as it depends on your income as a whole and not just the income from your wholesaling business.However, if you're set up as a sole proprietor (including an LLC who never made any kind of tax election with the IRS), you'll have a 15.3% self-employment tax on the profit from the sale - on top of the income tax you pay.

I'm not sure if it really makes a difference since the LLC is tied to my name (sole proprietor).I asked around and received mixed answers.

I am a real estate investor in Central Texas, and have thus far been a Sole Proprietor come tax season.

It is like a single proprietor law firm.

You can even have a company as a Sole Proprietor (not a LLC) and file the company name with the county office - FBN (Fictitious Business Name) a.k.a DBA (Doing Business As).LLC is a newly created small business and it might undergo changes in the future.

I also have a sole proprietor LLC side business that holds 22 rental properties.

Also you will run into less desirable financing options with an entity.As sole proprietor you have the ability to get better financing such as 30 yr mortgages and interest rates similar to owner occupant financing with lower down payments.You just need to have a checking account separate from your personal account.

The bank is telling me that any purchases of 4 units or less will be treated sole-proprietor with the benefits of any regular consumer mortgage including 3% downpayment and lower interest rates. 

So sole proprietor or business either way I'm on the hook. at least that's my experience.

I am a sole proprietor in my company but I believe it’s good business practice to track everything I do.