Forming an LLC

[Andrew Saquing]

I would like to start the process of forming an LLC. I have doing a some research but there is a lot that I don't know. Should I contact a cpa or an attorney for help in drafting the necessary documents? Or both?

I will be purchasing rental properties. I have read that you should only have a certain amount of equity in an LLC so as to protect yourself. And that when that point is reached, to just make a new one. Is this true?

Also, will I come across some issues regarding financing as well if I purchase through an LLC?

Cheers,
Andy

[Mitch Kronowit]

First off, where do you plan to purchase your rental properties? If in California, each LLC will cost you $800 annually, so don't worry about forming any LLC's until you are very close to making a purchase. If you plan on buying out of state, you will most likely want to form your LLC in that state. Talk to an attorney who specializes in entity formation, especially for holding investment property.