Should I set up an LLC???

[Matt Mariotti]

I am getting ready to do my first flip.. I am hearing some mixed thoughts on whether or not to set up an LLC. While I understand if you have a large amount of assets it is a good idea to set up an LLC, I just graduated from college 2.5 years ago and am still paying off student loans. Needless to say I do not have that many assets to my name. My private investor/partner in this does however have assets to protect. If the investment is set up in my name, can they only go after my assets or could my private investor/partner be on the hook as well? Looking for some sound advice here.. should I get an LLC for this first deal under my circumstances?

[Ronald Rohde]

I always advise clients to form an LLC, regardless of whether you think you have assets now, in a few years you will likely have equity in a RE project and do not want that to be easily attached.

For a minimal cost, the benefits outweigh the risks.