LP With S-Corp As GP For Flipping. Is This Correct?

I am forming a company with 3 other people & need to know the best way to structure it.



We will be rehabbing and selling homes. I have been instructed that a LP with a S-corp as the GP is the best for asset protection and tax purposes.



I am under the impression that all 4 should be incorporators of the S-Corp but confused about the LP.



If my s-corp is the general partner who will be the limited partner? Should it be one of the 4, all 4 of us, or something totally different?



Any help given would be greatly appreciated, Thanks

[ Edited by verbatim on Date 01/09/2006 ]

Comments(2)

  • homesolver28th December, 2005

    What about buying it with Private Money? Its easy to qualify and with a great deal like you describe very easy to find!

  • jeffkoon28th December, 2005

    I went ahead and purchased it for myself to rent for the short term (maybe a year to get a lower capital gains rate) and then sell. The assignment contract would have been great, but I suppose it is a bit late now - we are set to close it this week.

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