An LLC in most cases is pass thru to the members. This is determined by how the LLC is set up. It may not offer any tax advantages to you.
LLC’s are great asset protection for holding rentals. I know a corp is recomended for flipps.
Personally, I would flip a few before worrying about LLC’s and corps. When you do set up an enity, be smart and seek advise of a CPA and/or attorney to decide which and not go by advise given on boards like this. Each state has different rules and everyone has a different situation.
Hi There,
I’m new to the real estate investing arena in Pennsylvania and just have a question. I am looking to flip a few “fixer uppers” to build some capital then ,down the road, get a few rentals to increase monthly cash flow. Is it better( in the sense of tax breaks and financial area) to do this as an individual or form an LLC to limit liability. Which will offer a ‘newbie’ the best shot at building capital quickly?
Thanks