Buy and Hold - did you form an LLC or DBA?

[Meghan Custer]

Hi Everyone - 

I haven't made any deals yet - just information gathering at this point. I would prefer to not use my legal name on deals to protect my family's privacy. In your educated opinion, which is better - LLC or DBA? Neither? I'm leaning towards DBA at the moment. What are the advantages and disadvantages with regards to buy and hold investing?

[Greg Bishop]

I would say go ahead and get an LLC set up anyways if you can spring for it. In PA a setup is around $400 with a lawyer, about $200 if you do it yourself.

It's my understanding that only a LLC of the two can protect your personal assets in the wake of a lawsuit or something. Plus with the new tax benefits, the LLC is also a good call.

This way it has time to "season." If you're going to use institutional lending, quite a few banks want to see a history. It helps down the road if your looking for credit and such.

Good Luck, Hope you get you first deal.

-Bishop

The Bishop Real Estate Collective