For anyone with long-term real estate investment plans, forming an LLC (Limited Liability Company) should top the list of priorities. If you have something to lose – anything – forming an LLC can help protect your assets if a real estate deal fails. Many assume that an LLC is only needed for the formation of a company, not for an individual investor, but that’s simply not the case.
Even if you own just one or two rental properties, the cost of forming an LLC is worth the investment. The LLC can serve as asset protection, offer different tax options and protect your business in other ways.