LLC setup in Texas - who has done it? Is it worth it?
I'm an agent and an investor and I have a daytime job. I was thinking about doing all of my real estate work under an LLC. I would like to start a discussion about this strategy and any other related topics.
I'm going to be more active now that I am licensed. Nearly all my income from being an agent will be invested. So it sounds like I need two LLCs. One REI and one for agent.
Unless you're a broker you won't be able to do your agent work under your own LLC in Texas. (The LLC itself has to become licensed by TREC, and must have a broker associated with the LLC; if you're not a broker, not TREC license for the entity).
But if you're going to do non-licensed activities, operating under an LLC or other structure is generally (read as almost always) the correct choice as opposed to a being a sole proprietor. It can have tax advantages and asset protection advantages that operating without an LLC can't provide. Flipping and wholesaling should not be done by the same entity that would hold property for renting.
Again, just to be clear, your LLC *cannot* do licensed activities unless you're (a) a broker, and (b) you apply for and receive an entity license for the LLC from TREC.
