I am looking to get into my first deal in the next few months and am trying to decide on whether or not to start off with an LLC. My goal is to start with fix and flips, then move into REI passive cash flow options with the gained capital. Some background on me, I am a young engineer with a good job and little responsibilities (no kids, little debt, no assets to lose). With nothing that needs protecting currently, but the goal to grow my portfolio much bigger in the future, my question is to LLC now or later.
- What are the risks in transferring properties from your personal name to an LLC? What does this process look like? (Rentals with 30 year fixed)
- Does an LLC reduce the capital gains tax on a short term hold, ie: fix and flip (non 1031)?
- If the goal is to eventually have an LLC, what are reasons to wait instead of start with one?