[YouCanDoIt]

Wonder if you guys can provide some feedback.

Have a friend who is “flipping a contract” because they happen to know a buyer and a seller, but not a professional in either capacity, would they fall under the “professional” LLC category or can they stick to the regular LLC label? State of NY.

Initially, I was thinking this would be PLLC , but then that’s mainly for actual professionals like attorneys etc, and they are actually licensed, and it would be misleading to the public to advertise it as PLLC then, so LLC would be it?

And I don’t think you really need any professional credential to flip a contract either, correct?

Sorry for sounding all over the place, but I keep having this conversation with myself, so would really like some sort of input, and I completely understand this is not some legal advice forum!!***

FAR: 76
REG: Currently studying
AUD:
BEC:

[Anonymous]

Hello, certainly not an attorney here, but it is my understanding that in NY (and most states), only licensed professionals can obtain a PLLC. Since your friend is not a licensed professional, PLLC is off the table as an option. Here is the list of recognized professionals in NY: https://www.op.nysed.gov/prof/ .
As a side note, I am assuming you are talking about flipping real estate contracts. If this is the case, I would recommend your friend have an attorney review the contract if he is not already familiar with real estate contracts (some are near impossible to assign/do a three party close).

[YouCanDoIt]

@Chandler, thank you for your input, makes sense. I have also read that if this is not something that is going to be a routine (the real estate flipping), then it can be claimed under Schedule D as well as a gain. However, I am not a professional CPA yet to be dishing out such advice to him, and next thing you know he's in deep shizit. Best route, as you suggested an attorney for the contract and probably a CPA acquainted with real estate transactions for tax needs.
Thanks!

FAR: 76
REG: Currently studying
AUD:
BEC:

[Author]

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