LLC for your investment properties
Real estate investors have several tools to use for asset protection. One of the more commonly used tools is that of the LLC. There are many advantages and a few drawbacks to LLCs. For many, the biggest drawback is the added paperwork and management, particularly if you will set up multiple LLCs. Given the extra paperwork and management involved, when is the right time to set up your LLC? Not surprisingly, the answer is it depends. At a high level, most experts recommend setting up an LLC BEFORE you buy your property. If you already have real estate investment property, then they will tell you the best time is AS SOON AS POSSIBLE. But, there is a bit more it it than this. Several factors can come into play when deciding the right time for you. You’ll want to consider your current situation, your long-term strategy, tolerance for risk, and aversion to paperwork and lawyers.
