LLC, Personal Corp., or what?

[Cole Steele]

I am currently considering buying my first rental property. I just read chapter 16 (getting ready to close) in "The Book on Rental Property Investing" and it talks about keeping a checking account for rent and a savings for security deposits. 

So my question is, at what point do you decide if you should have an LLC or business entity to protect your own personal finances? Do you have that for your first house, or wait until you're more established? Should I be working toward an LLC now before I get a property?

I would like to hear any and all thoughts on this and am open to discussion. Thank you.

[Chris Seveney]

@Cole Steele

Personal preference but if you have a good pm, insurance policy and are not a scumlord you should be fine not needing a LLC. I know people with net worths over $3M and have rentals in their name.

People are afraid to be sued, what can you be sued for, and if you have have a lot of wealth then you should be able to afford an attorney who can defend you. LLC for commercial assets absolutely or multifamily for 1-4 units it's not mandatory