Starting a LLC for new investor. Advice. Help!
Hello all,
I would like to start investing in houses professionally on the side. I currently own one rental/investment property in my name. I am currently in the process of getting another foreclosure in my name.
I want to start a business of rental out houses, but which are the right steps for a NEW rental investor. Please see my two questions below regarding the subject:
1)I would appreciate if investors could tell me if they would create a LLC if they were in my position. (I've read several of articles and books, but still not entirely sure which pro/con apply in this rental business).
Feel free to tear down my Pro's and Con's:
*Pro 1- As a LLC, it would be better for maximum financing power
*Pro 2- Tax savings (less tax consequences ex. transfering properties, Less tax on profits and loss)
*Pro 3 - Asset protection, more options the better
*Pro 4 - Liability protection, I can only lose what I put in the LLC.
*Con 1 - Makes everything more complicated
*Con 2 - Makes money shuffling harder, or in other words I must be more financially accountable.
2) Should I start up a LLC and transfer my properties into LLC assets? Would I pay any taxes/fee for such transfers?
Any other advice, tips, advantages or disadvantages for creating a LLC and transferring all of my assets into it. Anything would be greatly appreciated
Thanks,
Ray
Also big thanks to Greg Boots for his posting on Biggerpockets regarding "LLC or LP?"
:D