Q - WE HAVE AN S-CORP FOR FLIPPERS AND AN LLC FOR HELD PROPERTIES AND THEN OUR TRUST CHECKING ACCOUNT. DO YOU USE ONE COMPANY FOR FLIPPERS, ANOTHER FOR YOUR RENTALS AND THEN ANOTHER FOR MARKETING? WHICH COMPANY PAYS THE ADVERTISING?
A - I use nothing but trusts that filter down to an LLC. I don't have one for flipping, holding, etc. I run everything through my one LLC. What I would do in your situation is have one LLC to run all the expenses through and then funnel the distributions down to the individual LLC's of the two partners and then onto your own personal returns. Why? You can then use incidentals each individually to help lower your tax basis as well.