Business Structure (LLC, or???)

[Jason Norris]

Should I incorporate before buying first property?

[Jason Marino]

Hi Jason,

I generally agree with the posts above in relation to simple structures versus more complicated structures. An LLC, when created the right way, can provide you with anonymity and limited liability protection. For a risk averse investor, these benefits are very helpful and balance the negatives of having an LLC. The downside to an LLC is that it has an initial cost and a maintenance cost. The cost to start can vary based on whether you create the entity yourself or have assistance from an attorney. The maintenance cost is something that is continuous, usually paid on an annual basis. This could include doing filings at the Secretary of State and maintaining a registered agent. You will additionally need to keep a separate bank account and a separate book of business for the LLC.