What is the best LLC or corp to start for commercial RE
Hello all, 

I'm looking to form an LLC or a corp for myself to begin buying commercial properties. I'm looking for some insight from the thread as I'm conflicted. My hope would be to use the company to buy properties and establish a line of credit for myself. All advice would be appreciated, I'm a young guy just looking to move forward. Thanks in Advance!
[{"id": "i2knvgg", "text": "You have to personally guarantee almost any commercial loan, so if it\u2019s a credit building exercise behind an LLC, LP or Corp, you\u2019re wasting your time. There\u2019s honestly not enough information here to give you an answer. It depends on the financing, if any, the state you\u2019re in and your individual tax situation. You need a good accountant to answer this for you.", "replies": [{"id": "i2kwqfa", "text": "There are liabilities other than the loans. and for that matter there are non-recourse loans available like all Fannie Mae.\n\nThere are arraignments where a typical judgement can only be collected on draws from the LLC and not on the actual assets. These are often a good way to avoid lawsuits in the first place because the lawyers involve are looking to make money and when you can unilaterally delay their payment it adds risk that incentivizes them to pursue other cases or to seek a settlement. \n\nIf you are interested in that sort of protection you really need to talk to a lawyer since details of how things are incorporated is important.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2kpg0o", "text": "You're going to be personally liable for everything either way, just do a cheap LLC.", "replies": [], "depth": 1}, {"id": "i2kq67v", "text": "If you can afford commercial real estate you can afford a lawyer/cpa", "replies": [{"id": "i2kqnu7", "text": "Very true, although aren't most questions asked in this thread geared towards not wasting our Attorney or CPA's time lol", "replies": [{"id": "i2kr1gb", "text": "Legal structure questions are never a waste of time, if it\u2019s not done right from the start issues may arise at the end", "replies": [], "depth": 3}, {"id": "i2ksb6p", "text": "Your going to need to pay someone for that expertise most likely. If your worried about tax ramifications call a CPA and describe what kind of property/income you will be receiving.", "replies": [], "depth": 3}, {"id": "i2l0dx5", "text": "Not only that, but the more you understand the better decisions you are able to make. Afterall, no one is going to spend as much time thinking about what works best for you than yourself.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2kt6oi", "text": "Speak to your attorney before doing anything; I am not an attorney. Typically you will have 2 LLCs; one is the brand LLC which you advertise and use to run your business and the other is the holding LLC(s) where you will hold title to properties you actually own. The brand LLC has no assets.", "replies": [], "depth": 1}, {"id": "i2la7g2", "text": "What asset type? Size of deal?\n\nLLC is a common SPE answer. Above that, it gets complicated", "replies": [], "depth": 1}, {"id": "i2lhfyf", "text": "1. Create an LLC with the state and request an EIN from the IRS.\n2. Go to a bank.  Open a checking and savings account under the LLC name.\n3. Deposit a Member Contribution into the account.\n4. When you purchase a property use the LLC.  You will be personally guaranteeing the loan.\n5. The only time you interact with the LLC is via Member Contribution or Member Withdraw.  Do not use the LLC for any personal use.  Keep the LLC and yourself separate.\n6. All rent is deposited into the LLC account.  All leases list the LLC as Landlord.\n7. Each year you can do Member Withdraws to take funds out.  Even if you don't you pay taxes as the IRS views an LLC as a disregarded entity.\n8. As you acquire additional properties use the same LLC.  I suggest up to three per LLC, but doesn't matter in terms of taxes.\n9. You can consider creating different LLCs for different areas, regions, states, etc.", "replies": [], "depth": 1}, {"id": "i2lpcq0", "text": "You don\u2019t need to do anything until you have a deal in contract. You sign all your paper work LLC TBD until you are in contract then you have your attorney set up an LLC before closing.  \nLLC is better than a corporation in regards to taxes. \nIf you want the most security you will set up one LLC per property. \nDon\u2019t forget LLC is a layer of protection but you can still be sued. Good insurance and Umbrella insurance are vital to protection.", "replies": [], "depth": 1}, {"id": "i2nqhl9", "text": "Please don't take this the wrong way but for what purpose would an LLC or a Corp be when you don't have a business or a property?\n\nI ask because I did the same thing. Put my name on business cards and the whole bit. Nobody cared about my cool logo or my LLC.\n\nFind deals. Make broker connections. Find people who are 6 mos to two years ahead of you in terms of doing deals  to partner up with. Find your superpower, like underwriting or construction or networking, so you can bring value to your professional relationships.\n\nYou will have tons of LLCs and Corporations..believe me. Good luck!!", "replies": [], "depth": 1}, {"id": "i2ogta0", "text": "You have no credit and cannot hide behind a shell corporation. Any smart lender would look to the principals for recourse.", "replies": [], "depth": 1}]