To Form an LLC or Not To Form an LLC, that is the question...

[Thomas Mc]

Hi all,

I'm a new RE investor with the hopes of getting my first property within a year or so. I'm a resident of CA and it's looking likely that my first property will also be in CA. I understand that it is wise to hold all RE property under an LLC so that my personal assets are not exposed to the operations of my RE properties; however, I do realize that there is an annual $800 fee in CA and that the protection you get from a CA LLC is not as strong as an LLC in a neighboring state like AZ and NV. Can anyone provide any guidence on whether I should form an LLC prior to getting my first property or wait until I have a more substantial amount of properties?

Thanks!