questions like licensing and insurance are not income taxes questions. the laws differ from state to state. even within the state different locals have different rules.
what you are engaging in are two separate activities that need to be reported separately. if anyone is joining you in the house flipping, then likely a partnership return needs to be filed. if you elect to be treated as an S-Corp there is a return for that. you may want to become a single-member LLC to protect against personal liability but the effectiveness of this varies from state to state. seek a tax pro who can advise you on these matters and provide other valuable information.
