Newbie - Is registration of Business required?

[Karla Barbacena]

I am a newbie in real estate. I am planning to buy my first investment property this year. Before buying, would you recommend to incorporate and register my business in the regulatories or can I just buy it and the asset will be recorded on my personal financial statement?

I am considering here taxes and legal responsibilities.

[Nathan Gesner]

Talk to your CPA but you're probably over-thinking this.

A lot of people create an LLC and place their properties under that. This may be a good solution for you but be sure to understand the law and operate it properly so you don't lose the protections afforded.

Most investors I deal with own the property in their own name. I have personally never met an owner that was sued and lost their investment(s) so I think the hype surrounding LLC and umbrella insurance policies is just that: hype.

Talk to your CPA, educate yourself, and determine what protection is best for you.