Ideal timing for starting an LLC

[Eric Schrader]

Good morning group.

I am looking at purchasing some rental properties (positive thinking) within the next 6 months. Is there any tax advantages to starting an LLC this year vs. waiting till after Dec 31?

thx

Eric 

[Graeme Ford]

@Eric Schrader I would suggest you watch the bigger pockets podcast #109 with Scott Smith. He is an asset protection attorney and discusses the uses of LLCs. He suggests for asset protection that you should have an LLC from the start because this creates anonymity of your assets. There are some issues with LLCs as well such as lending acquisition. Banks don't really like lending to LLCs so this can make it more difficult. Give that podcast a watch as it has a wealth of information. You can also check out the show notes where Scott breaks down what he speaks to in a document form.

www.biggerpockets.com/show109

The document is called 10 ways to protect your assets. 

Hope this helps. Take care and best wishes.