Should I start my own LLC?

[Scott Autenreith]

I will hopefully be beginning wholesaling within the next few weeks and I just had a simple question. Should I start an LLC for my real estate business? There are benefits to this, right? If so, what are they? Any help/guidance would be awesome!

[Madeline Burke]

Hey @Scott Autenreith I am not an expert on this but I am about to put my two current rentals into their own LLCs (and should have a long time ago) because each LLC is a separate legal entity. As I understand it the primary reason to put your real estate business in to LLCs is asset protection to limit your personal liability.

If something happened (knock on wood) and a property of yours got sued (rightfully or not) and you owned the property traditionally, you could be sued for any amount of your personal assets (house, car, wage garnishment...). If the property was owned by an LLC and was sued, the legal action would only pertain to assests owned by that LLC (hence the one for each property idea).