When should create an LLC?

Question

Hey guys!!! I haven't done my first deal as of yet, and was wondering when I should set up my LLC? Before I purchase a property or after?

Soh Tanaka · Answer

Buy the house first. After you purchase the house, if you think you need LLC, then just transfer the title to the LLC. Just so you know, it's OK not to have LLC when you only have one property.

Deangelo Mack · Answer

Would creating an llc now be deemed as too early considering I dont have a property in mind?

Deangelo Mack · Answer

Thanks guys!!!

Yuriy Skripnichenko · Answer

@Deangelo Mack

It depends on what you are planing to use the LLC for. If you are talking about putting a property into LLC you supposed to have it ready by the time you will be making an offer. If you do not want to create LLC before you have a property under contract you can use assignment in your offer and later create you LLC. However, not every seller will want to have an assignment. Bottom line is you will have to have your LLC set up be the time of closing

Bob Okenwa · Answer

It all depends what you are trying to accomplish with it. Most people set one up for asset protection, but you can get an umbrella policy that can help with that. Others like the asset protection and the ability to keep things professional and separate from their personal funds. An LLC will protect your personal assets to an extent, as long as you can keep it very separate from your day-to-day finances and run it as business. Also, if you plan on getting business bank accounts, commercial loans, or business credit cards and lines of credit, you'll need an LLC for that.

When should create an LLC?

Most Popular Reply