 Should I form a LLC? (by Nithya [WA]) Oct 28, 2009 10:37 PM
 Should I form a LLC? (by rise2it [VA]) Oct 29, 2009 12:01 AM
Should I form a LLC? (by Reid [KS]) Oct 29, 2009 1:50 AM
Should I form a LLC? (by Martin [MO]) Oct 29, 2009 4:12 AM
Should I form a LLC? (by Dejay [TX]) Oct 29, 2009 4:59 AM
Should I form a LLC? (by James [MA]) Oct 29, 2009 5:54 AM
Should I form a LLC? (by Nithya [WA]) Oct 29, 2009 7:26 AM
Should I form a LLC? (by Ellie [IL]) Oct 29, 2009 8:10 AM
Should I form a LLC? (by John... [MI]) Oct 29, 2009 8:21 AM
Should I form a LLC? (by Robert J [CA]) Oct 29, 2009 9:25 AM
Should I form a LLC? (by Dan [MA]) Oct 29, 2009 10:20 AM
Should I form a LLC? (by RJ [WI]) Oct 29, 2009 11:14 AM
Should I form a LLC? (by p m h [TX]) Oct 29, 2009 4:31 PM
Should I form a LLC? (by Nithya [WA]) Oct 29, 2009 6:11 PM
Should I form a LLC? (by Katherine [TX]) Oct 30, 2009 3:34 PM
Should I form a LLC? (by Nithya [WA]) Posted on: Oct 28, 2009 10:37 PM
Message:
State Specific Question About: WASHINGTON (WA)
I plan to buy a single family home as an investment property in Redmond, WA. This will be my first rental investment property. Should I consider taking an LLC? What are some of the pros & cons?
Thanks,
Nithya
--71.227.xxx.xxx |
Should I form a LLC? (by rise2it [VA]) Posted on: Oct 29, 2009 12:01 AM
Message:
Having been involved previously in both an LLC and a Corporation, I would never do an LLC again.
Vague descriptions...same jobs/functions with different (confusing) names...more expense to set up...more paperwork.
Can someone actually clarify how an LLC is better for real estate? --68.47.xxx.xx |
Should I form a LLC? (by Reid [KS]) Posted on: Oct 29, 2009 1:50 AM
Message:
Mr R has a pretty good answer for the LLC question . As for myself a sole proprietorship has served me for 31 years without problems and on more than one ocassion over the years I have asked my Atty and each time they've said it wasn't worth the effort to do LLC or Corp. Of course everybodies circumstances are different. --70.252.xxx.xxx |
Should I form a LLC? (by Martin [MO]) Posted on: Oct 29, 2009 4:12 AM
Message:
For 1 house? No. --70.249.xxx.xxx |
Should I form a LLC? (by Dejay [TX]) Posted on: Oct 29, 2009 4:59 AM
Message:
You should ask your attorney and accountant this question. If you don't already have an attorney that you work closely with you don't need an LLC.
For 99% of small landlords personal ownership with an umbrella policy and common sense management are the best way. --76.196.x.xx |
Should I form a LLC? (by James [MA]) Posted on: Oct 29, 2009 5:54 AM
Message:
LLC is a great idea for someone in your situation if you have cash to waste. --70.19.xxx.xxx |
Should I form a LLC? (by Nithya [WA]) Posted on: Oct 29, 2009 7:26 AM
Message:
Thanks for all your responses. I think it's clear that perhaps LLC is more pain than gain. I would rather spend my money with a good property management company than getting LLC.
--166.205.xxx.xxx |
Should I form a LLC? (by Ellie [IL]) Posted on: Oct 29, 2009 8:10 AM
Message:
There you go again.
Good property management company. Hard to find. And they probably won't take on one property.
So you need to come back here. You need to read up and learn the laws. You need to do that even if you manage to find a property manager. Because bottom line, rental property is a business and YOU are responsible for your business. --208.94.xxx.xxx |
Should I form a LLC? (by John... [MI]) Posted on: Oct 29, 2009 8:21 AM
Message:
Most here, and I agree, will tell you that a good umbrella policy is a much better option than an LLC. Especially for us smaller LLs.
- John...
--64.25.xxx.xxx |
Should I form a LLC? (by Robert J [CA]) Posted on: Oct 29, 2009 9:25 AM
Message:
A friend of mine has lots of income property with different partners. He holds title in an LLC, the same LLC. I told him this was a mistake, if someone got hurt at one property, they could carry the lawsuit judgement over to another property because it was owned by the same LLC (owner). Instead of correcting this, since he wanted to save money not having a seperate LLC for each property, he now lives with his mom and is broke. Someone died at a property and the judgement was so large it carried over to all his LLC owned properties and the insuance wasn't enough to cover it. He saved $600 PER property having the same LLC but lost 4 million dollars. --98.119.xxx.xx |
Should I form a LLC? (by Dan [MA]) Posted on: Oct 29, 2009 10:20 AM
Message:
If you give all the day to day responsibility to a property management company and you have a lot of assets to protect (other than the properties themselves) then an LLC might provide some good protection. --74.8.xx.x |
Should I form a LLC? (by RJ [WI]) Posted on: Oct 29, 2009 11:14 AM
Message:
Dan is right, if you are not going to be active and running the place but rather having a PM take care of things, an LLC is likely a great way to go.
You should look into what your state requirements are for a LLC, not all states are like Roberts example of CA. Some states are quite cheap and easy (like WI for example).
Roberts example also shows what happens if you dont have enough insurance, just saying you should have an umbrella policy is sometimes not enough but if you have a properly set up LLC and run it properly, it would have at least saved Roberts friends personal house and belongings. Thats one of the biggest advantage of a LLC, keeping your personal property seperate from the LLC propertys.
Historically, Mr.LL is not a good place to get helpful advice on LLCs but there are other investment forums that you can find the information and have alot of people using LLCs quite successfully. --72.69.xxx.xx |
Should I form a LLC? (by p m h [TX]) Posted on: Oct 29, 2009 4:31 PM
Message:
NO for one property. buy umbrella policy for
I pay about $150 per $1m per property. --68.191.xxx.x |
Should I form a LLC? (by Nithya [WA]) Posted on: Oct 29, 2009 6:11 PM
Message:
I think that makes sense. I will inquire about the umbrella policy and get it rolling. --161.181.xxx.xx |
Should I form a LLC? (by Katherine [TX]) Posted on: Oct 30, 2009 3:34 PM
Message:
There have been many recent posts about this. If you are not already using a CPA and/or attorney to assist you in your affairs, then an LLC is probably not needed.
They can be useful in keeping assets separate. This can be quite valuable. Depends on your personal matters.
Search the site for "LLC" and you'll see the other posts. --69.150.xx.xx |
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