LLC BEFORE or AFTER my First Deal?

[Michael A Rytina]

Hello-

I currently reside in Maryland, and my first rehab project is in PA

Curious which state I should form my LLC, and if I even need to at first?

Should I just file as a Sole Proprietor until I get a few deals under my belt?  Along with some cash !

Thank You for any help !

Michael 

[Matt Motil]

Sole Proprietorship provides you no asset protection, so there is no point in my opinion. For the time, energy and money it will take to do SP, you might as well do LLC. Easiest to setup in the state that you are going to operate in. If you think you'll get over the 40k/year mark in profits, then filing the S-designation is worth it.