I’m a new/young investor who is interested in learning about L.L.C.'s and their purpose for real estate investors. I’ve been reading many of the previous posts regarding L.L.C.'s but I feel I do not have a strong enough foundation to follow all that is being said. I am interested in learning the basics, advantages/disadvantages, what can and can not do with a L.L.C., etc. Any suggested readings or places to start? Thanks in advance!
get a Nolo book on LLC. Buy it or get it at local library.
Limited Liability Company is just that - a COMPANY.
it is NOT you, it is an entity other than yourself.
i still have a huge problem, mentally, with remembering this.
Like, once you put money in a bank account, it is no longer yours, it is the company’s. once you make an investment, it’s not yours, it’s the company’s.
it’s THE LLC, not YOUR LLC.
find someone that has similiar interests as you do, that you know fairly well and make sure that someone is smarter than you when it comes to the law and business. partner with them.
unfortunately, i have no one in my immediate circle of this nature.
LLC is very complex as is a S or C Corp, LP, LLP, etc.
it ain’t no DBA or general partnership, that’s for sure.
do not form an LLC with the intention of “using it for asset protection purposes”.
form LLC with the intention of running a business.
real estate is strange, as a business. it is the management of debt and leverage that basically drives the “company”.
whereas, this may be true for a start up business, like a retail company, selling items - you start out in debt, but slowly you create and build a business that makes money, real money, not debt financed funds. there’s a big, BIG difference.
be careful what ever you do.