LLC before first real state investment property?

[Maria McCambridge]

My husband and I are thinking about buying our first investment property and we're wondering if we should set up an LLC before we buy the first residential property. We want to make sure all related expenses are properly tracked as part of our new business, taxed are filled accordingly. And we're not sure if the LLC makes it easier to do so or if that's not really relevant

Thank you for any advise to these newbies 

[Chris Seveney]

Quote from @Maria McCambridge:

My husband and I are thinking about buying our first investment property and we're wondering if we should set up an LLC before we buy the first residential property. We want to make sure all related expenses are properly tracked as part of our new business, taxed are filled accordingly. And we're not sure if the LLC makes it easier to do so or if that's not really relevant

Thank you for any advise to these newbies 

The answer is it depends. Do you own other property? Will the property be a single family home? 

What we did for our first rental is we put it in our name (got better mortgage rate), got an umbrella insurance policy (protection) and opened a seperate bank account in our name to easily track income and expenses.

A LLC is a pass through entity, so it flows back through your personal taxes anyways.

When your net worth is greater than $1M+, or you are buying commercial property, that is when it may be more beneficial to get a LLC. Not legal or tax advice.