Should I form an LLC?

[Kyle Marsh]

Hello,

Is it worth forming an LLC with my father to invest in a rental property? My dad and I are hoping to invest in a rental property 50/50 as partners, but he is concerned about putting his assets at risk. He will act as the passive partner supplying half or more of the capital, and I will be the active partner putting most of the work into the property. This doesn't apply as much to me, because I am still a college student and only have 20k saved up which I would use towards the downpayment. What benefits are there to forming an LLC with my dad besides protecting our assets? What risks should we look out for? If you have one yourself, do you regret doing so too early? Any input is appreciated. Thank you!

[John Warren]

@Kyle Marsh I own multiple properties here in the Berwyn area in LLC's and the big thing no one tells you is how expensive it can be to do the accounting. I would guess that it costs me around $1000-1200 per year for each LLC. You want to factor that in to make sure you can still hit your return metrics with the LLC costs in place as an ongoing expense.