I live in Utah, and plan on getting a rental (and hopefully grow the one rental to several units).
I want to protect my personal assets and plan on forming a LLC or Corp. What are the pros and cons of each?
I live in Utah, and plan on getting a rental (and hopefully grow the one rental to several units).
I want to protect my personal assets and plan on forming a LLC or Corp. What are the pros and cons of each?
Spend the money on growing your business. You aren’t ready for an LLC, corp, or any other entity.
rkensparc - This topic has been discussed several times in the forum. If you browse through the threads or do a search you will find a ton of good information.
I agree with BLL that unless you spend the money to do it right your LLC may not protect you the way you might think/want.
Having said that - I did open a LLC for my business (I am starting a rental business). There were several reasons why I did it - the least important was to protect my personal assets. I am planning to protect my assets by getting a big liability insurance.
Again - do a search on this topic and spend some time reading the pros and cons listed. You will learn a lot.
Good luck!
concur with BLL, but if you’re going to do one, do LLC. Much more flexible form with less hassles…and no less protection.
I agree that its too soon for an LLC (I had the same question a while back). However, do you guys think that setting up an LLC primarily for finance purposes is a good idea? The way I understand it, you’ll have to personally guarantee the loans regardless. What would be the difference?
reasons for an entity:
I may have overlooked some reasons, but everything else is basically guru sales-speak.
the one item I would add to mcwagner’s list is that the LLC helps me keep my finances and the business finances segregated. Without the LLC my wife and I would probably end up commingling funds and treat the LLC as our personal bank… :O) By having the LLC we will be able to better segregate our finances. I know it is more a psychological thing than anything else. But it helps…
Thanks.