Is an LLC needed for wholesaling?

[Jon Catterson]

Is an LLC needed or desirable to conduct your wholesaling business? I could see giving a link to how to look us up on the Secretary of State's website to show legitimacy as one benefit. Another big one is protection of assets. I don't have much when it comes to "retire early" but more than enough to hurt if someone sued it all away. One drawback in California is the $800 per year franchise tax on LLCs.

Do you have LLCs for wholesaling? Why or why not?

Thanks in advance.

[Basit Siddiqi]

@Jon Catterson

LLC is normally used for liability protection - You should consult with an attorney to see if creating an LLC will protect your assets/interest.

In my opinion - Wholesaling has less risk exposure compared to other real estate business(brokerage, contractor, flipper).

When it comes to a business/mindset - you can get by with a DBA instead of going the full length of an LLC.

Somethings to consider before creating the entity.
Good luck!