“Do I need an LLC to purchase an investment property?” – Michael of Lakewood, WA

Technically, you do not need an LLC to purchase an investment property. While I am not an attorney, I can expand on how I personally use an LLC. I use the entity protection of an LLC when flipping homes. If something were to happen on one of the job sites, if an issue arises, maybe a massive problem with the home; the issue may or may not be associated with something we have done and I do not want to be personally liable. We utilize a limited liability company as asset protection. While this doesn’t mean that you are immune to the issue, it segregates the liability into essentially different compartments.