Asset protection: LLC or Business Trust?

Question

I have recently seen a post about forming a business trust to protect your assets, I thought that everybody was going for an LLC. I am still not sure what the differences are, and, most importantly, if I should set up the trust (or the LLC) BEFORE the purchase, and not after.

Also, I know that you can set up an LLC online, what about a business trust? Does anyone have any information?

Thank you in advance for your input.

Also, I know that you can set up an LLC online, what about a business trust? Does anyone have any information?

Thank you in advance for your input.

Constance Grandelli · Answer

Hi Salvatore,

In my opinion, unless you have over 2 million in assets, you don't need to do either of those.  Keeping a perfectly veiled LLC is difficult for entrepreneurs (and there are costs involved).  I've never done a trust, but my friend Kris Haskins does all his flips that way.  Just Google his name and his YouTube channel will come up.  I have worked with a person that did 200 flips a year without an LLC or using trusts.  So, how do you protect yourself? Umbrella insurance.  It's very affordable.  Flipping houses is complicated enough, why add more legal stuff and paperwork?  Hope this helps.  :0)

Nikki Giddens · Answer

Has anyone heard of Royal Legal Solutions? They help you set up series of LLCs