Purchasing REI's in my own name??

I have been doing extensive research on the differnce between an S-corp and an LLC… The only problem is that I don’t really understand why I would be better off creating a company to hold my REI’s in.

What advantages would there be if I were to create a company to buy my properties, as opposed to purchasing properties under my own name?

There are tons of advantage in using an LLC or C-Corp or S-Corp…
1st you need to talk to an account to go over what your goals are and wether you plan on doing this fulltime, need health benefits, and more.
As for the main reason to start your own company or well i advise 2 companies, its so people can not sue you and take your personal assests., also you want to build corp credit so you do not need to use your own credit to buiy properties (this is why you may want to look into more than 1 corp).
Remember you do not want to risk your personal credit forever on REI. In 2 or 3yrs you can have enough stablished credit to secure loans in your corp name.

Think about this, if your corp runs out of money, your corp declares bankruptcy and loses its assets. So if your properties are financed through the corp, your personal income and credit will not be affected…

Ya, I definately want the protection of my personal assets that is very important…

That one reason alone is enough to make me want to create my business :slight_smile:

I’m just starting out and I went back and forth on this over and over. My accountant told me to get an LLC without any hesitation. I set it up with my state gov. online for under $200.

I just talked to my banks business adviser (for the whole state) and he told me almost exactly what yrush2000 said in his post. Personal $$ to fund the investments in the LLC is OK for 2 to 3 years, then the financial institution will evaluate and work with business loans after you have shown that the business has good credit.