Should I Apply for an LLC before I buy my first property?

[Debra Mazzone]

Hi All - new to investing wondering if I should open an LLC before I purchase my first investment property. Thanks!

[Heath Shepard]

@Debra Mazzone you can always move the property into an LLC later on if you choose via a quitclaim deed. I am in the process of doing this right now for the first property I bought. LLC's are really good protection for liability exposure. I actually set up a trust which has all the LLC's under it. Each one of my properties has its own LLC which limits the liability of each property to just that property. If I sell the property I kill the LLC and in so doing all future liability forever. The reason my LLC's are under a trust is because just opening an LLC does not shield you completely. People can see who opened the LLC and could still in some instances find a way to go after you. I also wanted complete anonymity so if its owned by a trust there is no way to pierce that veil. This was described to me as the Cadillac of protection but just some information for ya. It can be overkill for where I am at right now but I have plans to aquireany more properties.

Best of luck to you,