LLC? Partnership? Corp? Friends?
What is the best type of organization for a REI business with 3 people (my husband, myself, and our friend). We are hoping to flip 2 properties w/in the first 6 months, and then purchase multi-units to flip/rent. It is my understanding that the tax consequences are better if the unit is owner occupied, but if you buy it under an Corp or LLC can you still avoid Capital Gains tax when you sell if you live there (and how long do you have to reside there?). All three people are necessary : we have $35K and the partner has $100K, and we all have specific skills construction/renovation skills.
I would greatly appreciate advice on this matter as I am suppose to meet with our lawyer on Wednesday.
Thank You,
~Gayle
You should consult with a accountant.....there are advantages to each as well as disadvantages.
The tax advantage is there if you own the house...not your company.........again, seek professional advice.