Buying in Your Own Name & Building Business Credit w/ an LLC

[CJ T.]

Hi everyone,

I live in California, investing in the Midwest.

(Read only the bold if you're short on time)

I'm getting ready to buy my first rental property (it's been a long time coming). Initially I was planning to establish an LLC for liability protection, but after several consultations with different law firms, entity structures seem more complicated and much more expensive than what I need just starting out and with and no real wealth to protect. 

More recently I realized that I don't need an LLC. Why? Because liability insurance + homeowners insurance + separation of finances + taking care of my property and tenants + being leveraged (the bank owns the house and anyone that might sue me will be in line after the bank) = a fine liability strategy for an investor starting out. So that's what I plan to do: I'm going to buy in my own name and use a DBA.

However, I also want to start building corporate credit now; which requires an LLC. So now I'm right back at forming an LLC again, but strictly for building business credit.

Do any of you have experience / advice / insights regarding forming an LLC just to build business / corporate credit? I'm thinking it could be my own kind of lending company; lending to RE investments, other businesses and projects.

Thank you in advance for any help!