Form LLC as own General Contractor
Hi folks, I am about to launch into a large rehab project. I own the house. Will be fixing some structural, adding sq footage, updating everything, etc.
While I know BP is primarily about RE investing, this question is more about whether I should form an LLC or not.
I plan to be my own General Contractor for the job. To do so where I live I will have to have proper insurance and licensing. I can get those fairly easily just takes some time, which I have.
As GC, I will sub out the first phase of the project to a first tier contractor who will then sub a few other jobs (e.g., brickwork, excavation, roofing) while they do carpentry, framing, structural. Once they finish a weathertight shell, I'll take over and finish work on the interior that I can do myself or sub where I can't.
What are the pros/cons of forming my own LLC as the GC (with myself as the sole member, and also the sole customer)?
One benefit area is potential tax deductions. At the very least I can get tax deductions for the formation and licensing costs.
I would run sub invoices and payments through the LLC to me as the customer at cost, so the LLC wouldn't be generating any profit or loss otherwise.
Are the liability benefits really worth it if I am the sole member?
Is there any other benefit I'm not thinking about?
Other than the administrative burdens of setting it up, and formation costs, are there other drawbacks that I should be aware of?
Or am I complicating this and I should just get the licensing and liability insurance under my own name and skip the step of forming a company.
Any advice you may be able to provide is much appreciated!
Best,
Chris