LLC vs Sole Proprietorship
Hi everyone!
I have been debating creating an LLC or conducting business as a sole prop with DBA (doing business as). Currently, I do not have any properties. However, I plan to purchase my first rental property in the near future. I figure this is a good time to consider business structure before any properties are purchased.
I understand the personal protection and the ability to choose the tax structure an LLC provides, but does an LLC have additional benefits that a sole prop does not? Also, I'm aware that there is a greater cost to start an LLC as well as a yearly fee to keep it current. Would it make sense to create LLC even if I have only one, or even zero properties?
A little background on my situation. I live in IL, but am look to long-distance BRRRR rental properties in KY. I am considering creating the LLC in KY as I do not plan on living in IL for the long-term. Would this change my strategy?
Any information, tips, and recommendations would be greatly appreciated!
Thanks in advance!