People ask us all the time: “Is an LLC 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 cheap. But I promise you, not setting up an LLC is more expensive…
Setting up an LLC might cost you around $1000 depending on how much you want done with it. I know $1000 seems like a lot to pay at first. However, an LLC will pay dividends in the long run.
Do I Need an LLC/Shell Corporation?
The answer is yes. Especially if you’re a real estate investor. What a shell corporation does, this operating company, is it 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 your assets, goes against your credit score.
And once you have a low credit score, you won’t be able to obtain the financing necessary to operate your business and acquire property. This prevents you from being able to do deals the way that you want to.
Those are real dollars. If you’re talking about less than $1,000 to protect your credit score, you’re talking about pennies on the future dollars that a bad credit score will cost.
An LLC 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. While the cost of an LLC may seem like a lot, at least it’s something you can afford.
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.
Whose going to want to do business with someone whose already been sued before? Think about that. 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.
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.
Learn more about preserving your wealth. If you have questions about what the LLC can do for you, or how to best protect your assets, ask them below. Or do yourself an even bigger favor and schedule your consultation now.