As a landlord, you may be better off by investing into a quality insurance policy. Both landlord policy and umbrella policy. Umbrellas are cheap and can be had to cover numerous things. If you are doing your own management of the property and even some of the repairs insurancebid the way to go. Less complications. That said you need to be insuring well either way.

Thanks Steven... based on the thread I'd probably do an LLC (landlord, no partners), but I'll definitely talk to someone as I get close to completing a deal. Thanks for the reply!

@Shoor Kalam You NEED to talk to someone before you do it. It can be costly depending upon your location and where you are investing. I typically say wait until you complete a deal or are very close that way you have an idea if you are going to continue to do this. An S vs C-corp can be a HUGE difference. You need to have the details. Thread on LLCs

Appreciate that, Aaron. I agree that advice on an actual investing structure should be handled by an accountant... do you think I should just go ahead and form one or wait until I'm closer to actually making a deal?

This is really a topic to discuss with an accountant and should be based on how you want to invest. But definitely create an LLC. This helps protect personal assets when a comoany is sued and if the company fails you will lose the comapny and not your person assets. I have multiple LLC compnies because of my investing structure and the fact I have a company outside of Real Estate. For taxbpurposes my accountant set everything up under an S-Corp. But we are revisiting this structure with my accountant because my investing is growing and strategies are changing. So there are a lot of factors here to where a direct answer cant be given. Thats my .02 cents anyeays...

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Updated over 11 years ago on 08/05/2013. Most recent reply

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Shoor KalamPoster

Frisco, TX

Starting Out

LLC?

Shoor KalamPoster

Frisco, TX

Posted August 03, 2013 10:46

Hi all... Wondering about how everyone is structured for tax purposes. Proprietorship? LLC? If I choose to create an LLC, should I do so right away or should I wait until a deal is imminent?

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