There are at least a thousand posts on this website about them you could search. You should do what you feel comfortable with. My opinion is someone with a low net worth and good morals can take it in their personal name without issue and most banks require it. It's what I did when I started. But you should do what helps you sleep at night.
I'm a invester / business owner in pontiac. I would like to hear about your purchase. I would suggest setting up an LLC. But you can transfer into the LLC after the purchase if timing is not working.
I prefer to have 1 LLC per property and a management LLC ( that I also own) recive all the rents ( and lease to the tenants) from each LLC. To do this you will also need a management agreement between your property LLC and your management LLC.
I would not do this until you have more then 3 properties or so.
Reach out I would be happy to meet with you. My office is in pontiac.
Clarkston Window and door
151 cesar e Chavez
Pontiac, MI 48342
Michael, it depends upon a lot of factors.
For people involved with REI, it depends upon what you want to do with the business as there are different tax rules based on type of entity.
For holding rentals, I generally recommend an LLC if you are setting up an entity at all.
For flipping and development, I generally recommend an S corp.
For wholesaling, my recommendation would depend more upon your specific business.
I went ahead and did a quick search of the topic of whether you should create a company or not. Feel free to take a look at the posts and ask a follow-up question if you feel like they are still unanswered.
Thank you all for your feedback! Very eye opening. The seller gave me some feedback on what he does as well setting up an LLC for only $25/year, so I’ll follow up with him regarding how that’s possible. I also think it may be a good investment for myself to at least speak with an attorney for an hour to get their take on the subject. I’ll follow up in about a week if there are any updates.
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