What kind of company is best for house flipping?

thehebrewhero · #1 04-01-2011, 06:32 PM

What kind of company is best for house flipping? If you are 1 person can you just do a sole propritership? Or is LLC or S corp the only way to go?

flip_it_fast · #2 04-02-2011, 02:28 AM

Hmmm, not my field of expertise hebrew.

Maybe Jared, realestatehound or Cal can offer you some advice on this one. They know what they are talking about!

realestatehound · #3 04-03-2011, 04:44 AM

I run mine through a S Corp. as my tax man thinks it's the best for tax's and if the corp. were ever sued I never keep over a few thousand dollars in the account and my office equipment is only worth around $5,000, so they wouldn't be getting a lot. But if you go in your name they can go after your home, cars and everything else you own. It is just a plain fact that we live in a country that loves to sue for anything.

thehebrewhero · #4 04-04-2011, 02:04 PM

If your doing alot of the work youre self or have friends and familiy doing work does it really matter?

badmomma · #5 04-07-2011, 12:42 AM

I think that realestatehound has it right. Its important to cover your assets.

Whether you are outsourcing or doing the work yourself you have to be able to keep whats yours in the event of a lawsuit.

realestatehound · #6 04-08-2011, 03:28 AM

The realtors and their clients and the buyers are the ones to worry about. All it takes is for someone to fall down the steps while looking at your house and you could have a lawsuite. I do most of my work, but what if my carpet guy falls down the steps and breaks a leg, who do you think he is going to sue. I just think an once of prevention is worth a pound of cure. If they sue the company the most they will get is $5,000, but if they sue me they get my home, farms and flips that I have going.