When to start a LLC?

[Levi Crabtree]

Hey everyone. I currently have 2 rental properties close to downtown Nashville, TN, self managed, and looking to buy more. Class B and I have great tenants that pay on-time and luckily do not receive many call at all regarding issues. Should I start a LLC or wait until I have 3+ properties? I just don't know when it's beneficial to have them under a LLC to get the most benefits out of having a LLC. Thanks for any insight and feedback.

[James G.]

@Levi Crabtree there's no right or wrong answer here. An LLC can provide asset protection, tax benefits, etc. so it's really up to you when this is important enough to start utilizing. Some people own far more than 2 properties and still don't have an LLC. My advise would be for you to do an extensive amount of research on the benefits of owning your properties in an LLC, and then make your ultimate decision from there. Hope this helps.