If the cash was earned legally and you are paying taxes, then just go deposit the money.

I'm moving on to my second live-in-flip, and would like to minimize taxes and I need help navigating through capital gains/self employment tax laws.

So my question is would it be advantageous getting a CA real estate license to familiarize my self with the process and laws then get another license in NC to gain access to the MLS and then build from there or wait for my move and just continue general studying until I can properly focus on my market and state specific laws?

So my question is would it be advantageous getting a CA real estate license to familiarize my self with the process and laws then get another license in NC to gain access to the MLS and then build from there or wait for my move and just continue general studying until I can properly focus on my market and state specific laws?

They must pay income tax as they earn or receive income during the year.Estimated taxes – If the amount of income tax withheld from a taxpayer’s salary or pension is not enough, or if the taxpayer receives income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, they may have to make estimated tax payments.Self-employment tax – This is a Social Security and Medicare tax.

Also wondering if I'm taking on any legal risk by participating or not participating? 

I want to thank the biggerpockets community for all the information that you guys are sharing and hope to gain experience so I may also contribute to this community.

or contracts from places like legal zoom good enough?

If you leave the money in an IRA and choose to invest in an asset such as real estate that produces consistent income (as opposed to speculative appreciation gains common in equities), then you will have the full value of the account to work with. 

He knows how it works, and he's creative enough to find ways to legally do things.