Multifamily Syndication Tip: When Do I Need to Form my LLC?
A question I get asked a lot is “as a multifamily syndicator who is just starting out, when do I need to form my LLC?” which I answer in the video above.
However, the short answer: Not right now.
I am not a lawyer, so I recommend speaking with one before forming an LLC, but based on my experience, here are a few things I do know:
- You don’t need to form an LLC until you have a deal for your investors.
- Once you have a property identified, you can form your LLC
- Whatever your company LLC is, your property LLC will be different. In doing so, you are protecting your investors and yourself from the domino effect where every entity is tied to your company
- Every property is going to be it’s own individual LLC (same reason as point 3)
- Focus on the step-by-step process of multifamily syndication before anything else (i.e. how to run the numbers, how to approach investor conversations, create your brand, have a thought leadership platform, etc.). Visit multifamilysyndication.com for articles and videos on the apartment syndication process
Again, I am not an attorney and I do not specialize in LLCs, so I recommend speaking with one. But I do know that we don’t need to spend thousands of dollars and/or our precious time on forming an LLC before we have a deal or understand the multifamily syndication process.
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