I have come across literally hundreds of various Tictok’s, Reels, etc. that make the above astounding claim. Just run out and and form an LLC and you will save money.

I’m here to tell you that forming an LLC will not save you one dime in taxes and you will simply incur expenses to set it up and keep it registered. No, you can’t simply set up an LLC and write off your car. That’s called tax fraud.

They also claim that you can use the LLC to get a business line and avoid using personal credit? That would be great if it actually worked. I don’t know of any lenders who offer business lines of credit just because you set up an LLC.

The final claim is that the LLC provides absolute limited liability protection. This is true ONLY if someone sues ONLY the LLC. If they sue you as the owner, it provides you NO protection whatsoever. Imagine if you own stock in Tesla and someone sues Tesla. You have limited liability to the extent of your investment in Tesla. If someone sues you personally, they can simply take your Tesla investment along with everything else. An LLC is lousy liability protection and something like an umbrella insurance policy is likely a much better option.

What an LLC IS good for is creating anonymity. Holding your rental property in the name of an LLC rather than your own can make it difficult for someone to find out that you own it.

The internet is great for the amount of information provided. It is also great for providing really bad information.