Need advice on LLC and insurance for a newbie investor

[John Hyun]

Hi everyone,

I've been doing plenty of research on this topic and thought it was time to seek some outside advice.  I've owned a 4-plex property in Long Beach, California. So my following questions are.

1. I work full time (W-2) how does an LLC on the property affect my tax situation?

2. Does forming an LLC in Wyoming and Nevada for my California investment a good idea?

4. Will forming an LLC make getting loans from a bank difficult? If so, is there other ways around this?

 I really appreciate your time. 

Thank you,

John H. 

[Ali Boone]

Yes it will make getting loans difficult. For the rest of your questions, I would 5000% ask your [hopefully investor-friendly] accountant. None of those questions can be answered by just anybody, partially because most people don't really know, and partially because every situation is different and your accountant is the one who will know all the numbers and logistics at play, and the potential impact to your income. Working full-time/W-2 doesn't matter, your actual income from that W-2 matters. Your accountant should be involved. But as a side bar, starting the LLCs in states other than California won't get you out of the $800/year LLC fee in California.

You didn't ask general opinions about whether you should form an LLC or not, but in case that's still in question, here's why I didn't go the LLC route (I also live in CA)-

https://www.biggerpockets.com/blog/2013/08/17/rent...

Hope that helps.