 LLC (by craig [TN]) Aug 25, 2009 1:55 PM
 LLC (by James [MA]) Aug 25, 2009 2:42 PM
LLC (by p m h [TX]) Aug 25, 2009 3:15 PM
LLC (by JC [OH]) Aug 25, 2009 4:27 PM
LLC (by Katherine [TX]) Aug 26, 2009 7:33 AM
LLC (by Dave [CA]) Aug 26, 2009 12:30 PM
LLC (by James [MA]) Aug 28, 2009 6:40 PM
LLC (by craig [TN]) Posted on: Aug 25, 2009 1:55 PM
Message:
State Specific Question About: TENNESSEE (TN)
Should I buy rental property in an LLC or just in my name? My accountant says don't use an LLC because I would then have to pay excise tax in TN. They are telling me to just buy a liability policy. Will that cover me? Fair Housing laws? Help please! Thanks. --69.137.xxx.xx |
LLC (by James [MA]) Posted on: Aug 25, 2009 2:42 PM
Message:
Insurance is sufficient unless you have a multi-million portfolio or plan to invest with partners. --70.19.xxx.xxx |
LLC (by p m h [TX]) Posted on: Aug 25, 2009 3:15 PM
Message:
your advisor & James are correct - buy insurance & umbrella(s) --71.11.xxx.xxx |
LLC (by JC [OH]) Posted on: Aug 25, 2009 4:27 PM
Message:
Nope, don't need an LLC...concur with above. --24.106.xx.xxx |
LLC (by Katherine [TX]) Posted on: Aug 26, 2009 7:33 AM
Message:
Agree with James and the others, however, you are the one who knows your situation.
Another good reason to use LLC structure is to keep divergent businesses separated.
So if you already are a business owner or have a law or medical practice, architechture firm or something where you are the principal or one of the principals, then there is reason to explore use of an LLC set up to keep the rentals fully compartmentalized from the other endeavors.
This is generally not something I see in all the books and book excerpts as a explaination of when to use an LLC. . . .
Again, you and your financial advisors know your personal matters better than we do. So go from the advice your pros are giving. --68.93.xxx.xxx |
LLC (by Dave [CA]) Posted on: Aug 26, 2009 12:30 PM
Message:
It really depends on what other assets you have to protect.
With no LLC, if tenant sues, all your assets are at risk.
With LLC, if tenant sues, only the assets in the LLC are at risk.
So in a State where it's not expensive to create and maintain an LLC, you could put each property into it's own LLC. This isn't feasible in CA as we have a minimum tax of at least $800 per LLC per year (last I checked).
I think if you take care of your properties and are quick to take care of issues, then liability insurance is probably good enough. As with anything it's risk vs cost. You could have a $1M insurance policy and get hit with a $2M judgement. Probably unlikely, but possible. --192.55.xx.xx |
LLC (by James [MA]) Posted on: Aug 28, 2009 6:40 PM
Message:
With LLC, if tenant sues, only the assets in the LLC are at risk.
Except in the case where your actions caused the liability and then all your assets are at risk. That is why LLCs and newbies don't mix. If you own and run the business, it's your actions that will cause the problem.
There's a case working it's way now. If the creditors prevail, money taken out of an LLC or corporation by the owners will be considered a fraudulent conveyance, meaning they will have to turn over those funds to the creditors. That will be a very dangerous precedent. --70.22.xxx.xxx |
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