Do You Need an LLC for Rental Property Investing?

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 1 September 2025

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode could save you tens of thousands, if not millions, in the long run. We get the same questions all the time: Do I need an LLC for rental property investing? Should I start an LLC before buying my first rental? Where is the best state for a real estate LLC? We’re not lawyers, so we can’t advise on this, but we do know someone who can—Brian T. Bradley, nationally renowned asset protection lawyer. Brian has heard all the “legal advice” from social media—an LLC makes you anonymous, an LLC helps you pay no taxes, and an LLC will completely hide your assets. If you’d prefer to 1. Keep your assets yours and 2. Not spend years in federal prison, this is the episode to watch. Just following any of the above (extremely incorrect) advice could not only risk your rentals, but also put you behind bars. In today’s episode, Brian shares a masterclass on asset protection, from which legal entities you need (LLCs, trusts, partnerships), to the biggest myth about where to start an LLC, how much it costs to keep your asset protection strong, and whether you really should buy your first rental without an LLC. Don’t know what an LLC even is? You better, and after this episode, you’ll be a pro! In This Episode We Cover LLCs explained (limited liability companies) and how they protect your assets The biggest myth about LLCs that will cost many investors in the long run When to upgrade from an LLC to an asset protection trust (you may already be there) How much an LLC costs to create, keep active, and where to start yours Offshore trusts that are virtually untouchable by US courts Own rentals? Do this right now, before you get sued And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1168 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This might be the single most frequently asked question by beginner real estate investors.
0:05.3	Do I need an LLC?
0:06.9	Today, we're answering it once and for all.
0:13.8	Hey, everyone.
0:15.0	I'm Ashley Care, guest hosting the Bigger Pockets Real Estate Podcast.
0:19.0	I hear this question all the time from rookie investors.
0:22.0	Do I need an LLC when I buy my first property? And I think what people are really asking is,
0:28.0	how do I protect myself, my property, and the rest of my assets from legal liability?
0:33.6	And this applies to both beginners and experienced investors. Things can always go wrong when you own a rental property.
0:40.7	You need to take precautions so you're shielded from the worst possible outcomes before they happen.
0:46.8	So today, I have Brian Bradley joining the show to explain the most effective strategies for asset protection.
0:53.4	Brian is a lawyer, in Oregon who has been
0:56.0	named one of the best attorneys in America and has worked with clients to protect more than $5 billion
1:01.9	worth of assets. We're going to talk about what an LLC can and what it cannot do. Who needs one
1:08.6	and how to set one up. We'll also get into even more advanced asset
1:12.2	protection strategies like the many different types of trust. I know some of the legal strategy
1:17.4	may not sound exciting, but understanding it can save you so much money in the long run.
1:22.4	And Brian is great at explaining these concepts and why we need them. So let's bring them on.
1:29.2	Brian, welcome to the show. I've gotten the pleasure of interviewing you on the Real Estate
1:35.5	Rookie podcast, but here today we are on the Bigger Pockets podcast. So thank you so much for joining me
1:41.6	today. Yeah, thanks, no pressure, right? The big show.
1:46.2	I hope we can live up to Dave Meyer's standards.
	...

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