LLC And Schedule C
I formed an LLC with one member, (myself) to buy real estate and do flips. I understand that I will need to file Schedule C. Is the net profit subject to Social Security taxes? If so, is there a way to avoid paying SS taxes, similar to having investment properties which is filed on Schedule E.
Unfortunatley, since you set yourself up as an LLC, there is no way to avoid the SE tax. The S-corp is better for rehabbing becuase after you pay yourself a reasonable salary, you can take the profits out and not pay the SS.
How did you elect to have your LLC treated for tax purposes. As a single member LLC, you have two choices -- disregarded entity and corporation. If you failed to make an election, the default is disregarded entity.
If you are a disregarded entity, then joecrane has pretty much given you your answer. If you elected to be treated as a corporation, then you are automatically a C-Corp with its own set of corporate tax rules that are separate and distinct from the personal income tax rules.