What Does An LLC Cost? And Is It Worth It For Investors?

People ask us all the time: "Is an LLC's cost really worth it?" This one has a simple answer. Absolutely, and this article will show you exactly why.

Let's be honest here. The cost of an LLC isn't nothing. But I promise you, not setting up an LLC is more expensive in the long run.

Setting up an LLC might cost you around $1000 depending on how much you want done with it. I know $1000 may seem like a lot to pay at first. However, an LLC will pay dividends in the long run. Check out my video:

Setting Up And Properly Structuring LLCs: The True Cost

Setting up and properly structuring LLCs isn't cheap.  However, they pay dividends in the long run.

Asset holding company is where you have a lot of your money tied up. The question becomes, do I really need an operating company? Do I really need the shell corporation for me to do all of my business?

A shell corporation (operating company) allows you to have a face to the world. It limits your personal liability from all of the business dealings that you do. This means real dollars, because a lawsuit against you, even if they can't collect against the assets, will go against your credit score. And with a low credit score, you won't be able to obtain the financing you need to operate your business and acquire property.

We're talking about less than $1,000 to protect your credit score, it's pennies on the future dollars that a bad credit score will cost.

An LLC/Shell Corporation Is Cheaper Than A Lawsuit

If you plan on being in the real estate business for the long haul, (I'm talking 10, 20, 30 years), the cost of an LLC is completely worth it.

On the other hand, no one can afford a lawsuit. The details of a lawsuit are required to be listed in public databases by law. So besides severely damaging your credit score and crippling your business, your reputation will also be jeopardized.

Who's going to want to do business with someone who's been sued before? Think about that.

I hope the above information has helped you. If you have any questions, I'd be more than happy to answer them in the comments below. In addition to being an asset protection specialist, I'm also a real estate investor. I know how it feels to be in your shoes.

If you have questions about what the LLC can do for you, schedule your consultation now.

Last Updated: 
August 17, 2017

Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.

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