Should I flip a property in my own name or start an LLC?

[Robert Muzyka]

I'm new to investors and plan on doing my first deal in Q1 of 2020.  I'm going after a flip and likely will partner up with a brother of mine to share the work and down payment, and we'll be funding the rest of the deal with hard money.

Do experienced investors recommend we start an LLC for this? Or just do it in our names?

[J Scott]

There are three people you should consult in order to make this decision:

1. Attorney.  A good attorney, either real estate or asset protection, will let you know the best way to protect your assets and minimize liability risk.

2. Accountant/Tax Professional. A great accountant or tax professional who is well-versed in real estate can help you figure out the best entity in order to minimize your tax burden given your overall financial situation.

3. Your Lender. If you'll be getting financing for your properties, your lender will likely have a preference for whether those properties are held in your personal name or in an LLC. Talking to your lender up front will help you ensure that you purchase the properties in a way that will make lending most efficient.

Ideally, these three team members will be able to coordinate the best solution for you.