Updated over 5 years ago on . Most recent reply
Do I need to set up a business or LLC to manage my own properties
I only have 2 properties that have been managed by a PM for several years. I'm taking over to have more control and want to know if I can run w/o setting up business structure. I was advised by CPA that I can but not sure if that makes the most sense or if I should do a DBA, LLC or what. We do plan to purchase more properties to BRRR if that makes a difference. Thank you in advance!
Most Popular Reply
@Pamela Aleman If you intend to continue purchasing properties, it is almost certainly worth it to setup an LLC. As others have mentioned, the primary role of an LLC is in limiting your liability. If someone sues you and they win, to satisfy that suit (to pay the debt owed), they can go after anything you own. If someone sues your LLC, they can only go after assets owned by your LLC. This is why some property owners actually use multiple LLCs (although I wouldn't recommend going overboard with this). If you own 10 properties and you split them in two LLCs, your limiting the potential liability by half for any suit.