Posted by Steve-DC on February 12, 2002 at 07:09:24:
If you’re flipping there’s various reasons to have an entity or not:
Asset protection. If you don’t have any assets right now, don’t worry about the entity until you’re consistently making money.
To get around assignment clauses with banks (selling the LLC). If this is case, I think it would make sense to form an LLC.
Anonymity. Wholesalers aren’t the most popular people in the world…if want SOME identity veil, go for it.
Now, this applies to wholesaling, where you won’t be holding the property or have tenants, etc. If you’d be there’d be a whole 'nother list of pro’s and con’s.
As well, I think a lot of people get hung up on the corporate entity issue before they get active. Try not to let this happen. If you’re really worried about the legal ramifications of some action of your’s, just hurry up, get an LLC formed (it takes 1/2 hour where I live) and get over that hump.