The LLC myth demystified. When too & not too file an LLC.

4 Replies

  1. How much does it cost to start an LLC in Ohio? What about California, Texas or New York?
  2. Do you REALLY need an LLC when you are starting out in real estate? Why? Why not?
  3. What about partnerships? Do LLC's make sense when you are doing a partnership?
  4. What does an LLC have to do with your rental property financing?
  5. Does an LLC make more sense in commercial real estate than residential real estate?

Click below for answers to the above questions along with a comprehensive cost list of filing an LLC in all 50 states across the USA.

When should you get an LLC when investing in real estate?

"You get an LLC.. I get an LLC...EVERYONE gets an LLC!!!" -Every lawyer ...best thing to do is do a land trust and umbrella policy and if you are REALLY anal then LLC that *****.

Originally posted by @Ed Moran :

"You get an LLC.. I get an LLC...EVERYONE gets an LLC!!!" -Every lawyer ...best thing to do is do a land trust and umbrella policy and if you are REALLY anal then LLC that *****.

Thanks for commenting Ed. Care to share a few reasons here as to why investors would be best served getting a land trust? Would love to get a nice list going for everyone.

I am not a lawyer BUT I play one on TV.  The reason I would use a land trust is anonymity.  If they can't find you that cant sue you - It is not a vehicle however to protect you against litigation. "With a land trust, no one needs to know what real estate you own either during your life nor at your death. By using a land trust with an attorney as a trustee, there will be no public record of your ownership of the real estate in the trust. ... The property will be managed by you or by your agent"

Originally posted by @Ed Moran :

I am not a lawyer BUT I play one on TV.  The reason I would use a land trust is anonymity.  If they can't find you that cant sue you - It is not a vehicle however to protect you against litigation. "With a land trust, no one needs to know what real estate you own either during your life nor at your death. By using a land trust with an attorney as a trustee, there will be no public record of your ownership of the real estate in the trust. ... The property will be managed by you or by your agent"

 Those are some great points. Anonymity can protect you from a lot of sketchy situations. Being sued is just one of them. Could be far worse as well, like the time a Tenant found out where my wife & I live and tried to burn our house down. Click here ---> https://youtu.be/d5WKXZo8MJU for the full story.

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