Need help in entity creation

3 Replies

I am about to start with my first rental and will continue to build more rentals in the coming years but I want to get the correct entity set up for me and my goals. I have been doing a lot of research on LLC's and what state I should start one in but I think its time I reached out to a CPA or Lawyer that knows better than me so I can get the proper entity setup. if anyone has suggestions or knows individuals I can contact on the matter please feel free to PM me. Thank you ahead of time.

@Mahonri Bussey buying 'rentals' is very vague.  Do you mean little residential houses?

If commercial 5+ unit apt buildings, MHPs, self-storage units, strip malls, etc I agree with the entity concept.  By all means, treat a commercial enterprise like what it is.

I own all of my commercial assets inside LLCs.  My little houses have good insurance, but I own personally.  Because of that, I get favorable financing and insurance terms.  

Mix carefully residential property and business entities!

Smart Tech For The Smart Landlord
The Smart Way To Manage Your Rentals
Enjoy growing your portfolio without paying more for it. Unlimited units & easy-to-use apps.
Get Unlimited Units

@Mahonri Bussey I would not overthink this one.  Sounds like you are heading down the direction of "paralysis of analysis". 

Get a simple LLC set up and go get a deal done. As you expand into more deals and bigger ones then I would spend time with your legal / accounting advisers about correct entity formation.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you