Which entity should I form?

Forming your own entity is fine, you do not need an attorney. You can also go to your Secretary of State website and figure out how to do it yourself without paying a service to do it for you.

As for which entity, LLCs have become very common. It likely will not make a great deal of difference which entity you choose. Before you proceed, however, I recommend that you consider two things:

1. You should talk to your tax advisor and let them be the judge.

2. Most lenders will charge a significantly higher interest rate to a business organization. Consider whether you want to make your invest personally or as a business organization.

Here is the link to set up a company on your own in WA:

http://www.secstate.wa.gov/corps/eforms_notice.aspx

Here is the link for the Master business license:

http://www.dol.wa.gov/forms/700028.html

Here is a link for a local Spokane business formation company that is super cheap:

http://www.washingtonregisteredagent.net

Many people hold real estate in their LLC's. If you're flipping the house, with the new rules, you have to get a contractor license anyway now whether or not your doing it personally or as a business.

Here's a link to the contractor license: http://www.lni.wa.gov/TradesLicensing/LicensingReq/default.asp

The question you should figure out is if you make money on it, whether the gain will be better to take tax free personally if you stay and live there for more than a couple years, or if the liability is too great and not worth the risk of doing personally. You'll still owe the excise tax when you sell regardless.

Here's a local spokane attorney that is reasonable and has good advice:

Robb Grangroth:

3021 S. Regal St. Suite 101
509-535-6200