To form a LLC or wait?

[Jered Noland]

We have reached out to a couple of local investors and we are getting mixed thoughts. One investor suggested to form a LLC and buy properties through a business. They said it would protect us if things go wrong. The other said it wouldn't benefit us through taxes and fees with the start up... What would you guys think?

[Jeffrey L.]

@Jered Noland One way to consider whether to LLC or not is how much you want to protect your personal assets and if the additional costs / efforts justify it? As an example, if I am a fresh grad living with my parents and owns nothing, I will just go with personal, because it's easier to get mortgage, less tax filing headache, less costs overhead.

If I am a little later in life, say a spouse and some kids, own my primary residence, and don't want to start my life over if someone falls on my rental and sues me, having an additional LLC layer provides some peace of mind. Remember, LLC exists for a reason, it is a matter of whether you can leverage its benefits at your current situation.

Some may say, and I agree, that you can protect your personal assets via an insurance policy.  That is true too, but I don't want to get too off topic here. =)