Setting up an entity before getting started?

[Brandon Walason]

Hello everyone. So I am planning to start my investing career using the fix and flip strategy, with the goal of building capital to buy and hold in the future. My question is, should I set up a LLC before I do my first deal? Or should I just get started and set up an entity later? What are your thoughts?

[Jessica Zolotorofe]

Hi @Brandon Walason. You don't necessarily need one now, but once you find a house you like, you should get started, especially if you have any partners and need a lawyer to prepare an operating/JV agreement. But you do want to have it already set up and in place by the time you take title to a property so you don't have to try to transfer title later. So before your first closing, I would form it and open a bank account, and then close in the name of the LLC so that you have the benefit of the corporate protections from the beginning.