Forming an LLC

[Michael Bickel]

Hello,

I am new to REI, just purchased my first house last year (Owner-occupant). Originally, the goal was to rehab, then sell after 2 years with no capital gains tax. However, after diving in and gaining more knowledge of RE and developing my future goals pertaining to REI, I believe I will be renting it out or doing a lease option instead. This is just background info on where I am at.

My goal is to continue accumulating multi-family rental properties, and eventually get into apartment complexes, and down the line potentially commercial RE. Currently, I only own my house, no other properties. I know that I want to form an LLC for when I start purchasing, which I'd like to do this year if I gain enough understanding of creative financing options, since I have low money down. This is my question: I may buy a property this year, I may not. Either way, I am wondering, should I form my LLC right now, and can I even form it right now with no properties (not including my current home)? Furthermore, I am in Indiana, & I know Delaware is the best state to incorporate in from a general business standpoint. Is it recommended to incorporate a real estate LLC in Delaware as well, or incorporate in another state that is good for real estate LLC's, or incorporate in the state where the business is taking place (Indiana in this case)?

I am greatly appreciative of any advice or insight! Thank you!

Michael