mrbrooks 0 Report post Posted December 3, 2009 I have purchased and read the program. I have been searching the forums for an answer to the following question, but have not yet found it. Is it best to get a business entity first then start doing deals or do some deals then get the entity? I am in California so the $800/year minimum tax for an LLC is pretty steep without any income from deals. What do you all think is best? Thanks in advance for any replies/help. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 3, 2009 Hello, Mr. Brooks, and welcome aboard.In my opinion, I would hold off for the time being on forming an LLC. For starters, California charges more than any state in the country for forming an LLC. That's not an insignificant amount, as you already mentioned in your post.The purpose of the LLC is to keep your personal assets separate from your business dealings. Are you planning on remaining in these deals long term, where the chance of someone suing you increases? Or are you planning on taking a short term approach via assignments? If the latter, the need for an LLC at this time is minimal. My two cents. . . Share this post Link to post Share on other sites
mrbrooks 0 Report post Posted December 3, 2009 Wow! Thanks for the quick response. As you suggest I will be focusing on CA's at first. There is always a possibility that a situation will arise where a SLO will be the better option. I understand what you are saying though. I was just curious if anyone had done deals without the biz entity set up first. It sounds like that is the case. Its time to get started. Woohoo! Share this post Link to post Share on other sites
Real Estate Invest 0 Report post Posted December 6, 2009 I'm personally a landlord, and own my rental properties under LLC names, but I would offer the following caution:Single-member LLCs offer no protection whatsoever from collection. Period.If you're serious about protecting your real estate assets, speak to an asset protection attorney, and create some deep protection (such as owning property in a partnership LLC, where your controlling interest is owned by a blind trust, etc). Otherwise, there's absolutely no reason to waste your money on an LLC; you might as well just own the properties in your personal name and save yourself the taxes, legal fees, and extra accounting fees.Best of luck with your real estate investing, ____________________________McMenaemie Share this post Link to post Share on other sites
mrbrooks 0 Report post Posted December 7, 2009 Thanks for your reply McMenaemie. I appreciate the advice. Share this post Link to post Share on other sites