I am new to the site and new to the mindset of real estate investing. I just finished reading Rich Dad Poor Dad and I honestly feel like this is the direction I've been looking for. Because I am just starting my learning I have 100 questions about each new thing I learn.
I am now fixated, due 100% to Rich Dad, on LLC's. How to start one is easy to Google but it's the details I'm looking for. What is my personal roll within the LLC? How to I pay myself to profit most from the tax benefits? Who should I hire, work, or network with to ensure I'm writing off the right things? How do I fund the startup of my LLC?
These are off the top of my head as I lay in bed typing but each answer gets me more questions. Since finding Bigger Pockets I have had the most exciting and frustrating 3 weeks of my life. I am excited to see a path in my mind to financial independence and security for my kids. I am frustrated that I can't dive into this more than I have due to my current financial obligations and a job that I love (and will love until I leave to continue my investments).
Now that I've said too much, please understand my question. I am not looking for the answers to the questions above, I am looking for resources. I am working my way through podcasts, webinars, forums, and anything else I can get my hands on but I am looking for books to tell me everything I need to know and more about LLC's.
I have started my journey by liquidating $5,000 and putting myself on a plan to clear my current financial liabilities and start feeding my asset collum. Now I need to start planning my life as an investor.
Thank you so much for taking the time to read this. Your knowledge, experience, guidance, and support will be greatly cherished.
The first thing you need to do is decide why you need an LLC, because it sounds like with all the research you still don't know. Then go talk to your accountant, they can guide you in the 15 min's it takes to set up an LLC.
Hey @Chris McPherson ,
The LLC is primarily a tool used for asset protection, though it can be used to help when tax season comes around. I've discussed the topic very often through the forums and wrote a couple more general articles on LLCs in regards to taxes: the different filing statuses and how to compare different entities. I did a podcast with BiggerPockets a few years back (episode 109) that explains the LLC and it's function for real estate investors - that would also shed more light on the topic.
Those are all the accumulation of answers I have developed from answering questions on the forums for investors over the last few years, so they should help a bit.
@Chris McPherson The LLC is a tool in your investment toolbox and you need to learn how it works with all the other tools you need. It's also a form of insurance, against litigation, and used for asset protection.
That being said, till you have substantial assets and/or income to protect, you should concentrate on getting the level of wealth or generating the income requiring asset protection an LLC provides. At this moment is like wondering what kind of locks to have on what kind of safe to store the treasure you have yet to find.
Thank you all for your insight. I realize that I am just getting ready for step 1 and am already asking questions about step 11. I feel that my LLC will be my most valuable tool for protecting my assets and sheltering my income. As such I want to learn as much as I can so that I can be smart with my business. As of today I will start accruing business expenses and since I am starting small I want to be sure my money is used efficiently.