Do you need a LLC to get into the field

[B&B Investments]

I thought you needed to make a LLC before starting your investing and the like. And if you don't won't you then be libable for things. I am confused.

What is needed the very first step to inversting. to get a compasny started or just go out adn start investing etc.
I am confused. :oops:

A confused Racy

[Jim Johnson]

You do not need any of these to invest, they really do 2 things. First, they do shelter what you do from say, your family. BUT... only if you follow the rules. You never mix business and personal, if you do, and get caught, the veil is broken and you are fair game. The second part of this is, a enity can spend 'pre-tax' money. So the expences you run through your enity are spent tax free. Again, you must follow all the rules or the IRS calls a foul and you do not get a 'get out of jail free card'. But that being said, I know many people who have no enity and just invest as a person.

Oh... I start at the S corp- then run everything through LLCs, LPs and trusts. The S corp manages all the rest of the enitys. For what thats worth... I dont know...


I thought you needed to make a LLC before starting your investing and the like. And if you don't won't you then be libable for things. I am confused.

What is needed the very first step to inversting. to get a compasny started or just go out adn start investing etc.
I am confused. :oops:

A confused Racy

[Dan Auito]

First things first B&B I am going to ask you to download and install this tool bar: http://toolbar.google.com/T3/index once installed all you have to do is click the green check-mark and you'll look like the worlds best speller.

Now to answer your question, no it is not necessary when starting out to be incorporated, you can go right out and buy property. Just ensure to have insurance coverage and maybe a general liability umbrella policy for 1,000,000 these are very inexpensive so speak with your insurance agent and get one set up. Tell them you will be investing in real estate and it should cover landlords etc...
Once you find yourself getting a FEW properties under your belt then it would be wise to protect those assets. Go buy a few and don't worry so much, just do your due diligence and try very hard to do what is right.

[abby]

I am currently talking to lawyers about getting something set up. I started thinking I needed an LLC, then read about a Living Trust. Talked to a lawyer, now he's suggesting an LLP. Maybe you can clarify things a little.
I have property in two different states. I want asset protection, and I want to be able to avoid probate and estate taxes.
Any suggestions?

[Jim Johnson]

Abby, for what it is worth, each entity protect you in a little different way. Your CPA should be able to let you know the tax reasons for each entity and how each works in probate. Then your attorney can help you set each one up. There are also several courses you might want to take if your going to use a lot of a certain type on entity to hold property in. So a template with a land trust ,limited partnership or LLC might do you well. Remember there is downside to each entity also, the better the protection the harder they seem to be to set up, and the more time consuming they are to maintain. Good luck!


I am currently talking to lawyers about getting something set up. I started thinking I needed an LLC, then read about a Living Trust. Talked to a lawyer, now he's suggesting an LLP. Maybe you can clarify things a little.
I have property in two different states. I want asset protection, and I want to be able to avoid probate and estate taxes.
Any suggestions?