LLC just for protection?
|Posted by: Dean Aug 26 2004, 07:32 PM
|If one only has about 6 rental units and plans to keep them long term(15-20 years), then what other than some tax advantages is the real benefit of an LLC? Is it not easier and likely more economical to just increase your liability insurance? Considering the additional legal and accounting fees. Thanks for the great site.
|Posted by: loanuniverse Aug 26 2004, 07:40 PM
|A lot of people carry rental properties in their personal names. I see dozens of personal tax returns and personal financial statements every year, and if the danger of having your name in the title was great, I would not see those assets with the frequency that I do.
On the other hand, I don’t see a lot more accounting involved by creating an LLC. Really…. with rental properties under your name you still have to keep track of revenue and expenses.
There are other benefits to creating another entity, such as being relatively easy to take on a partner or get rid of one on the fly.
Is it cheaper? I don’t know would have to take a look at the premium.