Having a Limited Liability Company can be beneficial when purchasing and investing in your property. The main purpose of an LLC is to prove liability protection for the members and managers. LLC’s are certainly not a requirement however you might determine that it could be the perfect choice for you.
Owning a property is public domain, meaning that anyone can know that you just purchased that cute bungalow on the corner of State street in your culdesac. This is where having an LLC would save the day. An LLC gives you the privacy that we all love. In the public domain, the property would be listed as Jane Doe or John Doe letting your investments remain just under your new LLC name.
LLC’s are great when you have two or more business partners or employees as an LLC does not have limits on the number of members they have and there are no restrictions on how members are paid. For example, this can benefit when you have two owners who both have an equal interest. However, one owner has put up more money to startup cost and put in more labor and time. With those things taken into account, the 2 owners have agreed that the owner who has put in more time and more upfront cost will get paid more. Under other company structures, this would not be allowed. These are just a few reasons why having an LLC is perfect for purchasing investment properties.
Setting up and maintaining an LLC is easy and with our help, this process can be even easier.
Contact us today for help!