LLC or Incorporation

[Christopher Williams]

Hi everyone!

I'm new to this world of real estate investing, and was looking start my career off in wholesaling and potentially work my way to rental properties. My questions is, would I need to first start a business initially before creating a buyer list and contacting investors, and should I start a LLC or Incorporation?

[Chris K.]

Christopher Williams

I don't know if you received any answer to your question. For wholesaling, you will need to do a lot of networking so I would start that now.

In terms of your question about entity choice, I think you are asking whether you should form an LLC or a traditional corporation. In most cases, most would recommend an LLC. After creating one, you can elect whatever tax status you want. Consult with a CPA about what's the best option.

One thing to look into is the exact benefits you get from incorporating as a wholesaler. The amount of liability protection you receive might be less than what you imagine.