Should I be starting an LLC before I start investing?

Question

I am looking to jump into Real estate after 29 years of working for the same company. I really can't wait to say good bye to the Long Island railroad!!! Should I be opening an LLC before my first investment? Does it matter?

Mayank S. · Answer

Exactly as @Tariq Bahay mentioned, it's upto you. If you are jumping onto REI bandwagon and planning to buy properties through financing then you need to understand that most conventional financing lender do not lend money to LLC. Title should be on your name. If buying cash or having lot of properties in the portfolio then LLC makes sense for asset protection. Also keep in mind LLC does not provide full proof asset protection as entity. Attorneys can pierce the corporate veil if not structured correctly. Another route is to take umbrella insurance. Just my opinion.

Robert Ilario · Answer

thank you Tariq.

Matthew Kreitzer · Answer

There are a number of corporate and business structures available to an individual. You should consider sitting down with a local, licensed attorney to discuss your particular business plans to determine whether an LLC is the best idea for you. Although an LLC is best for a lot of people, it isn't always. Find a local attorney soon.

Tariq B. · Answer

Up to you really. That's what it will come down to.