Form LLC or Not? (Group of Partners)

[Mike Dusenka]

Hello BP,

A group of 5, including myself are all partnering together to invest and BRRRR. Should we create an LLC?

Let’s say 1 of the 5 run into a financial problem or is sued and a party tries to take the individual’s asset(s) as collateral. How would we all protect against that?

Is this something to worry about? Should we form an LLC or a clause in a partnership agreement?

Keep in mind I don’t believe this will ever happen because everyone is very professional. However, I want to make sure we’re all protected because we wouldn’t want a surprise that one day our properties are being seized.

Would love to hear your advice!