Should I get an LLC?

[NIcholas Hamel]

Hey everyone need some quick advice. I have one rental property currently and I am looking to go for another soon. Is an LLC recommended? If so when? And what are the main benefits of it? Thanks!!

Nick

[Costin I.]

@NIcholas Hamel - If you are new to REI, you should be primarily concerned with finding good deals and growing your business first. I would not suggest to look into establishing LLCs and asset protection strategies till you have at least $100-300K in equity and only after you covered properly the "other" aspects of risk management (insurance, umbrella insurance, proper property management, etc.).

Here are some diagrams to help you on this quest:

All the domains that need to be aligned/intersect for asset protection diagram:https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-spectrum-diagram - What is needed for a complete asset protection OR the domains that need to be intersected to find asset protection.

Diagram: https://www.biggerpockets.com/files/user/CosIorg/file/asspro-onion-diagram - The layers of asset protection - what, when and cost.

Decisions Flow Diagram: https://www.biggerpockets.com/files/user/CosIorg/file/asspro-cya-diagram-v6a-solo-401k

Diagram: https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-structures - How a fully implemented asset protection layout might look.