To Form an LLC or Not To Form an LLC, that is the question...

[Thomas Mc]

Hi all,

I'm a new RE investor with the hopes of getting my first property within a year or so. I'm a resident of CA and it's looking likely that my first property will also be in CA. I understand that it is wise to hold all RE property under an LLC so that my personal assets are not exposed to the operations of my RE properties; however, I do realize that there is an annual $800 fee in CA and that the protection you get from a CA LLC is not as strong as an LLC in a neighboring state like AZ and NV. Can anyone provide any guidence on whether I should form an LLC prior to getting my first property or wait until I have a more substantial amount of properties?

Thanks!

[Ben C]

Thomas,

have you done a search on the site already. there are plenty of posts regarding the same question. check it out and you can post more specific question after going through them. it's all depend on how much you are protecting to determine if it's worth the annual fee.