Just starting out -- as a Passive MF investor do I need a LLC?

[Ron Willbanks]

I have decided to become a passive investor in MF. I am just starting out and my research indicates the syndication will create a LLC so there does not seem to be a need for me to create one. That said, should I open a business bank account in my own name as a sole proprietor or create a DBA to protect my SSN? All I am providing is capital into any deal for now... Your help is appreciated.

[Lee Ripma]

You do not need to have your own LLC if the syndication is setting one up. You COULD and your LLC would be part of the new LLC not it’s not necessary. You’ll get a K-1 from the syndicator’s LLC at the end of the year for your taxes. Please check with a professional regarding your own tax and liability implications, I’m answering from my own personal experience.