There are tons of discussion threads on LLC's. Above are two just to get you started.
Yes, you should consult a qualified professional such as a lawyer to make sure the entity is setup correct.
There is the direct cost such as the ~$125 yearly registration fee to NJ (assuming you are looking to make one in NJ). There are indirect costs such as operating your LLC correctly, having to obtain commercial instead of residential financing, for example.
Again consult a qualified professional or two about taxation. But, unless you are investing with a non-spousal partner, the LLC is there to provide asset protection, not tax benefits. As with any activity, you should keep your receipts and there are certainly many ways to do it -- asked many times here on BP.
Because the LLC pretty much invariably will be a pass-through entity, it will be taxed on its profits regardless if you "take the money." Funds are transferred between yourself and the LLC via either a "owner's draw" or a "contribution." It is an accounting notation as you are taxed on your profits, not on how much money you "pull" out of hte company.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
1. Do I need to talk to a lawery about this or can I do it on my own like online?
You can, but based on your basic understanding I'd urge you to hire an atty.
2. is there a cost to a LLC?
In OR, to create/record one with State Business Registry about $100. However, PAY AN ATTY IF YOU DON"T KNOW WHAT YOU'RE DOING!!!
3. How does tax benefits work with an LLC? should I hold all my reciepts? and should I use a app?
An LLC serves as a way of holding the property to limit recourse or claims against the property to the LLC and what it holds. Income is almost always passed thru according to how the operating agreement is structured.
4. How does paying yourself with an LLC work?
You craft an operating agreement when you register. You follow those rules on how the income is distributed.