When do You Need an LLC?

If you’re on our website, I’m sure you’re here to learn more within your real estate journey. Like ourselves, we had to ask ourselves the same question. When do you need an LLC? Let’s get into it while I share my personal experience and opinions!

When do you need an LLC?

The answer is it depends😅 Let’s look at two different people that will hopefully paint a better picture.

Meet Sally

👩🏽‍🦳 Sally wants to rule the real estate world one day. She treats her real estate like a true business that will eventually have employees and do marketing under her business name. In this case, it makes sense for Sally to keep her business and personal things completely separate. Her book keeping is already becoming complex, and as she grows it will only become more and more important to keep things separate.

Meet Harry

👱🏽‍♂️ Harry on the other hand just has a rental here and there. He never rehabs properties (he hates big projects) which means his expenses and income are pretty regular and predictable. His properties are simply a way to retirement. He uses his own name and W2 for his loans and would never consider what he does as a business. For him it doesn't make sense to maintain an LLC.

Are you in need of an LLC?

At the end of the day, an LLC CAN provide asset protection. But this is only the case when you maintain your LLC correctly. Simply having an LLC does not stop you from getting sued. NOR do you have to have an LLC to be a business owner.

A lot of people will let this question stop them from getting started. Of course, always consult your attorney (as I am not one) but just know that plenty of people have gotten started without having an LLC, or ever having an LLC.

How can you get involved? If you’re looking for a community of empowered women in all stages of real estate, you’ve come to the right place. If you’re starting your journey we have several academies from our experiences that you can find here that include MTR Profit Academy, Property Management Academy, Running the Numbers, and several female real estate retreats a year where we bring women in real estate from across the country together for programming and a whole lot of fun!

Interested in learning more about our stories? Head to our podcast on Apple or Spotify, Women Invest in Real Estate where we talk all things real estate with special guests!

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