Is it necessary to have a business entity before starting to flip properties?
No, but it’s probably fair to say that it’s smarter.
Even and LLC can provide some protection as opposed to sole proprietor.
I am not an attorney, and not offering Legal Advice, but the simple answer here is NO, you do not NEED to have a business entity, but it is SMART to protect yourself, your own home, etc
What if someone gets hurt on the flip property. They will sue the owner. You are the owner. They sue you and everything you own is on the line.
But if the property is owned by 123 MAIN LLC, then they can only sue 123 MAIN LLC and the assets of that company.
Hope that helps!
I would think along the lines of: Is it necessary to wear a condom when you have sex with a person you just met?