Originally posted by @Clifton Berry :
Hey there BP family. Now I absolutely know that I don't HAVE to go and get a business license to start wholesaling properties, but if I have the funds, team, ect. to start a company, should I? Will it look better to seller/buyer as a individual REI or a REI company? What doors open if I was start wholesaling as a company?
Thank in advance!
Initially, it doesn't really matter. After you have done 2 or 3 under you belt, you can create a single member LLC. There are formalities that have to be followed if you create an LLC and if you don't follow them properly, having an LLC is pointless. It is better to get Umbrella Insurance than getting an LLC initially.
Also, make sure you hold on to a property as a rental so you don't end up being designated as an IRS "dealer" (a tax term) that takes about 1/2 of your profits. You can do this almost "tax free" if you set it up correctly, or you can lose 50% to taxes if you don't. The biggest risk is taxes, not lawsuits. An LLC doesn't help you regarding taxes.