How should you run your rental business?

Question

How should you run your rental business? (LLC / S-corp / DBA / Personal Name)?

Eddie Memphis · Answer

Properly.

Jerry W. · Answer

I would go with an LLC for renting or a Sub S if you do flips.

Rob Hayes · Answer

A debate I've always had with fellow investors is how should I START my rental business?  Let's say I'm a young married couple, I have very few assets to protect and I'm looking to purchase my FIRST rental property.   I think I'm going to buy a condo; I'll have $15K equity in property and cashflow $200/mth.  Is this really the time to set up an LLC (or a Series-LLC)?  Some really rough numbers... I think it will cost about $1000 to set up my LLC and than another $500 or more each year to renew the LLC and file its taxe returns.

What do you all think?

Peter Gordon · Answer

Jerry,

Do you buy the property in your name and then roll it in to the LLC or does the LLC buy the property? Are you buying with Cash or  with a mortgage to acquire these properties? Thanks

Eddie

How do you Properly run your rental business?

Regards

Pete

Neil G. · Answer

Personal Name too risky in this day and age and state of practically 'martial' law:

https://www.biggerpockets.com/renewsblog/2016/01/2...

the guy got a WARRANT OUT FOR HIS ARREST just for narrow patch of lawn that was left uncut!

How should you run your rental business?

Most Popular Reply