Advice on Partnership Structure

[Kesha Hamilton]

I am looking to start investing with a partner and would like opinions on whether it would be best to be under the same LLC or would it be best for each of us to form our own independent LLC and partner (or JV) that way? What are the pros & cons of each?

[Simon Ashbaugh]

Hey Kesha, setting up a single LLC can be simpler and cheaper initially. However, both you and your partner would be personally liable for any debts or problems that arise. On the other hand, establishing separate LLCs for each of you, along with a formal agreement offers greater asset protection and flexibility. However, this often involves more complexity and expense. I recommend consulting an attorney who specializes in business and real estate law before making a decision. They can help you understand the legal and financial implications specific to your situation, ensuring you make the best choice for your partnership.