When to create a LLC/Corporations

3 Replies

Hello BP,

I was wondering when does one actually create their LLC or corporation. I'm looking at my first deal to purchase at the moment. Should i already have a LLC in place?

If it's a commercial asset, yes. Establish your entity first.

If just a house with debt, I don't. I would first face the borrowing and insuring hurdles folks face that put residential property into commercial entities.  Call around to lenders and insurers to make sure they'll even do it.  Horse before he cart, Jacob.

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Of course. Residential asset with debt, for me, means no entity.  Check with lenders and insurers. Better to find out if they can cooperate with the sophistication before than after, right? Can't hurt to check!