When to properly use an LLC

[Quincy Ford]

Hi all, I am brand new to the real estate game and to the bigger pockets family, but hungry and eager to learn as much as possible. Currently located in Florida, I am looking to get going by finding my first rental unit either single family or multi family. For my first deal, is it smart to set up a LLC right away? Or is this only useful when I have a bigger portfolio and more at stake? Also, if I were to go into a partnership with someone when going into my deal (me and a friend both split the downpayment costs), does it change the answer of getting a LLC on my first deal?

[Jonathan R McLaughlin]

Good advice by @Jaysen Medhurst I'd add that if you have a partner creating the operating agreement of the LLC is an excellent exercise. We didn't create an entity until we started doing commercial loans. I believe hard money usually will only loan to LLCs but thats not my area.