 LLC vs Corporation (by Phyllis Williams [FL]) Oct 24, 2013 7:43 AM
 LLC vs Corporation (by John... [MI]) Oct 24, 2013 8:22 AM
LLC vs Corporation (by J [FL]) Oct 24, 2013 9:36 AM
LLC vs Corporation (by Robert J [CA]) Oct 24, 2013 10:11 AM
LLC vs Corporation (by John... [MI]) Oct 24, 2013 10:12 AM
LLC vs Corporation (by Mb [NY]) Oct 24, 2013 6:33 PM
LLC vs Corporation (by Baltimore LL [MD]) Oct 25, 2013 3:44 PM
LLC vs Corporation (by Phyllis Williams [FL]) Posted on: Oct 24, 2013 7:43 AM
Message:
State Specific Question About: FLORIDA (FL)
I will be a landlord soon. I was looking for advice including pros and cons of forming a corporation vs LLC as a landlord in the State of Florida.
--99.136.xxx.xx |
LLC vs Corporation (by John... [MI]) Posted on: Oct 24, 2013 8:22 AM
Message:
Do a search here on "LLC" and read the many comments. Here's my quick version that I usually add to the discussion...
LLCs were intended to protect NON-MANAGING members only. They do not, by design, protect managing members from liability. The name is a bit of a misnomer when it comes to managing members -- especially in single-member situations. They simply were not created to "limit liability" for that person -- contrary to what the name might imply.
Also, in some states/areas, you would no longer be able to represent yourself in court (either with an LLC or Corp) -- you'd have to hire a lawyer for all court-related actions.
What are you buying? What are we talking about for net worth? In most cases, your best bet might be NEITHER an LLC or Corp. Instead, you are likely best off with proper insurance for the rental plus a large umbrella policy. Probably cheaper and easier to maintain in the end than an LLC or Corp also.
Note: I am not a lawyer. You mileage may vary. Look both ways before crossing. Do not divide by zero.
- John...
--216.111.xxx.xx |
LLC vs Corporation (by J [FL]) Posted on: Oct 24, 2013 9:36 AM
Message:
I know that the S-Corp is usually used for flipping, not rentals. If people own in an entity most of the time it's an LLC, or sometimes an LLC/land trust combo (used for privacy). --50.89.xxx.xxx |
LLC vs Corporation (by Robert J [CA]) Posted on: Oct 24, 2013 10:11 AM
Message:
Sorry not to give you the answer you seek! Instead I'm going to give other valid information. It is more important to carry proper liability insurance on your income property and then an umbrella policy on top of that. Insurance is cheep and easy to come by.
So many landlords think they are brilliant! They form an LLC or Corporation and get it and their property insured, but they still manage it. So when a tenant goes to file a law suit, they often name the owner and not the LLC or Corporation. Since they didn't title the ownership or insurance to also cover themselves, they have "no" insurance coverage for a suit against their names only. So unless you are a LLC or Corporation expert, conduct the required yearly paper work and meetings, it may not hold water and can be pierced by a opposing attorney. Good luck. --71.104.xx.xx |
LLC vs Corporation (by John... [MI]) Posted on: Oct 24, 2013 10:12 AM
Message:
Exactly what I was saying -- I agree with Robert completely on that. Good stuff.
- John...
--216.111.xxx.xx |
LLC vs Corporation (by Mb [NY]) Posted on: Oct 24, 2013 6:33 PM
Message:
In speaking of LLCs, I have a property held in an LLC and I am in the process of an eviction. I hired an agent to do the eviction and have to provide verification to the court that I am a partner to the LLC.
This seems to be turning into a nightmare. Not sure what else will come up next.
I now am thinking twice about the decision I made to do the LLC, thinking I would cover my personal stuff by doing it this way. Not realizing how hard it may make it in other areas. --50.48.xxx.xxx |
LLC vs Corporation (by Baltimore LL [MD]) Posted on: Oct 25, 2013 3:44 PM
Message:
First off, get a lawyer. Pay a couple hundred, pick his brain for an hour, make sure he knows about your major assets, liabilities, etc. Get it done right, don't be penny wise, pound foolish.
Second off, IMO Robert is most nearly correct. I am an attorney but not in your state, and I don't know all your assets/liabilities. So you need to find someone who has done this before.
Good luck. --76.100.xxx.xxx |
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