Setting up an LLC in Maryland as a Real Estate Holding Company
Hey BP community,
My partner and I just purchased our first buy-and-hold property. It's 3 units and is under renovation right now. We are expecting our first renters to move in by March 2015. It's currently under his name only but we plan to refinance when renovations are complete and transfer under an LLC.
I'm interested in hearing your opinions and experiences with LLC's (doesn't have to specifically be in Maryland, but that's where we live). We're considering a single member LLC in part because we can avoid having a separate tax return and it's only a $300 annual fee to keep the business in good standing with the State. This was the recommendation of our accountant and seems like the easiest path while still providing the legal protections and tax benefits we're looking for.
I'm fairly certain this is the path we're going to take but I wanted to hear of your experiences with this structure or other types of legal structures in which you hold your properties so we can have something to compare to. Again, this is our first property (hopefully of many) and we want to do this right.
Thanks for taking the time to reply!