Should I S Corp or LLC - Wa newbie

**maynard** · 02-07-2010 11:01 PM

I currently live in Wa State. I am preparing to travel to Arizona and commence flipping houses with another builder. I plan do accomplish several flips.. buying houses for about $60-70K, adding $20K and selling for $130-$150K

I do not have a current license. My partner does not have one either.

Heard pros and cons re: LLC's and S Corps. I'm looking to understand which will give me the most tax advantage and which will protect me the best

What direction should I go... LLC or S Corp?

**foxsie** · 02-08-2010 12:54 AM

legalzoom.com ?

**GlobalWealth** · 02-19-2010 05:11 AM

Stay away from Legalzoom. They only provide you with very basic, boilerplate documents. This is not the time to cut corners on entity structure. If you are going to own significant assets, you need to make sure it is done properly.

For my clients, I only use LLC's for holding real estate. They offer the best asset protection, much better than an S-corp. From a tax standpoint, and LLC is advantageous as well. I would also not file the LLC in my home state for this type of enterprise. Let me know if you need assistance or have further questions.

**David Burrell** · 02-25-2010 07:39 PM

Listen to Global the other site sounds like a scam.

**GlobalWealth** · 02-26-2010 03:19 AM

Originally Posted by David Burrell

Listen to Global the other site sounds like a scam.

I certinly wouldn't say Legalzoom is a scam, but you get what you pay for. it is very basic documents and no advice or planning. forming a company is a very important step, and shouldn't be taken lightly.

**Paul22** · 02-26-2010 04:51 AM

LegalZoom's Education Center allows you to access the information you need to make informed decisions.LegalZoom helps you make reliable legal documents from your home or office. So why stay away from the Leagalzoom's ???

Injury Claims

**GlobalWealth** · 02-26-2010 05:23 AM

Originally Posted by Paul22

LegalZoom's Education Center allows you to access the information you need to make informed decisions.LegalZoom helps you make reliable legal documents from your home or office. So why stay away from the Leagalzoom's ???

You can choose LZ if you want, but this is not the time to cut corners. You can search their website all day looking for your answers, but when you are starting a business it is always advisable to have qualified advisors. An advisor spends time with you assessing the situation eliminating problem areas. If you want the cheap route, I am sure LZ will provide the minimum requirements, but if you want to actually start a real business, you need real adviors.