L.L.C

[Arthur D.]

Hi everyone,

Couple questions. 1. Should I start a LLC when I purchase my first rental property.

2. If I purchase a property in Pennssylvania and my residence is in NY where shouls the LLC be.. Can it be in NY?

Thanks

[Curt Davis]

Are you purchasing cash or financing? If your doing financing the bank wont let you purchase in an LLC. You can quit claim ot over after you close but the home is still owned by you personally.

If the only reason you think you need to form an LLC is for protection, this is a false theory. All you truly need is the proper insurance. Most people get an umbrella policy to cover the property and others you purchase.

When you form an LLC you pay a fee to set it up and register it. A yearly renewal fee and a fee for your CPA to file a tax return. Its not worth it in the end.