DBA for the Beginner Investor

[Michael W.]

My wife & I are planning to purchase our first rental property next year.

I have read so many different things about LLC's vs Umbrella Insurance & I still haven't come up with a plan of action.

When leasing our properties I would prefer my tenants to pay thier rent to a enity and not me or my wife's name. Has anyone started out with a DBA and formed the LLC after they have obtained more properties down the road.

[Marcia Maynard]

Yes. We did. Ten years without and ten years with. My husband and I currently maintain umbrella insurance, property insurance, and two LLCs (one is for REI properties we own with partners and the other is for REI properties we own by ourselves). Our tenants have always written their rent checks in our DBA name. However, on the rental agreement we use our LLC name with the DBA.

Good thing you are studying the pros and cons of different methods. Choose what works best for you at this time. Re-evaluate and adjust as needed.