To Form LLC or Wait Until Established?

Question

I have read several arguments and still somewhat in the air about whether or not to form an LLC prior to getting started in flipping and some buy and hold in the near future.

I have just moved to CA and am just starting to gain the knowledge of CA law.

What can you suggest as far as should I just do my first few deals by myself in my own name with an umbrella policy? Or should I just go ahead and establish the LLC?

Curt Davis · Answer

Sotart with your personal name and an umbrella policy, that will serve as better protection then any LLC would.

Also, if you plan to buy and hold and use any type of bank financing a LLC will not help you there either as the banks dont make loans to LLC's.

Good luck