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Updated over 1 year ago on . Most recent reply
Just Starting Out in Real Estate Investing - Should I create an LLC? Or?
New to investing. About to start purchasing Section 8 homes in the next 60 to 90 days and wondering how and if I should set up a corporation of some type to own the properties to protect my assets and get the potential tax benefits.
Where should I start? Do this on my own? Hire someone?
Thanks in advance for the suggestions. Looking forward to building a team as I learn and begin my real estate investing.
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#4 General Landlording & Rental Properties Contributor
- Rental Property Investor
- SE Michigan
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#4 General Landlording & Rental Properties Contributor
- Rental Property Investor
- SE Michigan
Tax benefits? Most LLCs are pass-through tax entities, which means there is no difference between having and not having an LLC.
LLCs really only provide protection if 1) you get sued, which is a low probability if you run your properties correctly 2) the lawsuit exceeds your insurance liability protection, and 3) you have maintained your LLC in a legally-correct manner so that they don't get disregarded during the lawsuit.