Starting a partnership with LLC

[Ernes Sahic]

Hi everyone, My brother-in-law and I are wanting to buy a investment property. I will be doing the renovation work and he will be the one getting the loan to buy the property. Do he have to have a LLC or can we get that later once we have a few properties under our belt. I've heard of getting a DBA, is that something I should get first? We live in Texas. There isn't any trust issues between us, I just want to make sure we don't have any legal issues. Are there any other concerns we should have?

Basically we are using his income to get the loans for the property, the we are remodeling, and either flipping or holding.

[Braden Smith]

You don't need an LLC or a DBA. Just have a partnership agreement drawn up for that one project. I highly recommend doing this for each project rather than forming an LLC partnership long term. I know you say there are no trust issues, but very rarely do business partnerships last long term...