Starting an LLC

[Charlie413]

Is it best to start with creating a LLC first? Even if I am in the beginning process of looking and acquiring a rental property that will be up and running in the next couple months?

[Brian2036]

I think so. We did.

It’s easy to do and doesn’t cost much in most states.

It’s not necessary but I think it’s a good idea.

There can be tax benefits, and, more importantly, LLC stands for LIMITED LIABILITY COMPANY.

 I definitely want to limit my liability. In a worst case scenario, if someone decides to sue me, all they can get is the value of Casitas Dora LLC, which is basically nothing except a stack of business cards.

[Erin6316]

@Brian2036 I'm wondering this too....My husband and I are about to begin construction on a pole barn, and we plan to turn part of the barn into a small AirBnb apartment.  I'm wondering if it would be better to start the LLC before we build the apartment (because maybe we could write off the cost of building as business expenses?)  or wait until after we build the apartment to start an LLC (and maybe pay ourselves rent from the LLC?).  Any advice on this?

[Inna22]

@Charlie413 your first step should be to set up a land trust and that entity should be the one buying the property. Make sure the land trust is on as many official documents as allowed- water bill, internet, etc. Some require a person but most do not. The next step is to step up the management company and it can be an S corp or an LLC. S corp is cheaper and easier to report, at least in Illinois and for a single owner I did not find to be more beneficial than the other