All,
I'm so glad I hit what seems to be the motherload of small business websites!

Here's my situation and questions:
I am building a house, with a partner, as a spec home. In other words, we're building it without a presale, in hopes that someone will purchase. Should I start an LLC for this house? There is certainly a chance that I will build more homes in the future... My other option, it seems, would be a partnership, which would be much easier and cheaper to start up. Can someone explain the advantages of an LLC for THIS SPECIFIC APPLICATION? I have a general idea of the advantages of an LLC, but I'm looking for insight into specifically building this home. I WILL HAVE builder's risk insurance, which covers injury and theft/vandalism, etc, if this makes any difference.

Also, if an LLC is the way to go - can you send me to a resource (book or website) that clearly explains how to start an LLC? I found a website called mycorporation.com that seems to be a one-stop shop for incorporating as an LLC or other.

Thanks, I look forward to hearing your insights!

starting a LLC would probably be benificial for tax purposes when you do choose to sell the house. but i would suggest talking to an accountant, or a solicitor to find out the best thing for you... good luck though... and welcome to the forums.

If you want legal advice, you should consult an attorney. You could go through the effort and expense of setting up an LLC only to be disappointed to find out you have made a mistake and don't have the protection you thought you had.

You didn't state your reasons for wanting an LLC. Are you concerned about being sued if someone gets hurt on the job site? Are you concerned that the house will collapse on the buyer, resulting in a lawsuit?

One thing to consider is that the LLC as a new entity will have no credit record and it will be very costly for the LLC to borrow money.

I'm starting to think that a homebuilder forum or a legal forum would be a much better place to get the answers you need.

To vividreamer:
The profits and losses of an LLC "pass through" to the owners and typically do not confer tax benefits.

P.S. If you haven't already, you might want to also post in the Business Law section of this forum.