Starting an LLC While Keeping Costs Low

[Codi Clausen]

In starting out I am looking to buy my first of many rental properties and am looking to set up a couple business entities to keep myself safe. There seems to be a lot of costs involved with setting up multiple entities and hiring an attorney to set them all up correctly and a CPA to assist with my books and write offs. All these costs eat away at the little bit of cash flow I hope to have coming in from my investments. How do I go about doing all this in a cost effective manner and still make profits? Any suggestions?

[Basit Siddiqi]

@Codi Clausen

"couple business entities" why do you need a couple business entities for one rental property? that seems like overkill.

One other thing to be cognizant about is that California normally has a $800 minimum fee associated with most returns.

Asset protection is important and should be discussed with an attorney. With that said - you may want to discuss entity vs insurance protection with your attorney to see which route covers your concerns and overall costs.