Should I Form a Corporation for Flipping Houses?  by on June 5,
2012Jason Van Steenwyk  One common question real estate
investors of all types have – including flippers – is the
question of forming a business entity. For most of you, forming
a separate business entity is going to be a good idea – once you
actually get involved in buying properties.  Here’s why:  house
flipping businessReal estate property of any kind is what
lawyers call a “liability-generating asset.” Home and property
owners are a steady source of income to the membership of the
Trial Lawyers Association. People can slip and fall on your
property, or someone can get sick from chemicals found on your
property, or someone can slip and fall on your sidewalk, or a
child can come and play in your unattended pool, without your
knowledge, and drown. Any of these things can result in a hefty
lawsuit against you – and result in a nasty cash payment,
judgment and even force you into bankruptcy.  Forming a separate
legal entity, such as a corporation