I know this topic has been posted in the past. Just would like some input from people who do this stuff all the time.
We are buying our first propertys;Two duplexs. I would like to set up an LLC for a holding company and manage the property through my construction company. After talking to an attorney, that sounded like the way to go. Then I was talking to my tax guy and he said just manage it through the construction company.
I am just looking for the best way to protect my personal assets. I know each case is different. Just some thought?
I would say to go with your tax guy for now because you are just starting out and only have 1 duplex
I am assuming that you have a mortgage on that duplex, If that is the case, don't event worry about setting up an LLC for the moment. It would just cost you more. The mortgage itself is already a form of assets protection. In the unlikely event that you get sue, the prosecutor will do their homework and see that you only have one duplex and even have the 1st lien of top of it Most likely they won't be able to get anything out of it after all the attorney fee and court fee. They will drop the case.
If you buy it straight out cash then yea, put it in an LLC and/or setup a credit line over it and/or buy a good liability policy
Debt is a form of assets protection. take advantage of it!
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@Robert Way - You've talked with the attorney and the tax guy. But what does your insurance agent say?
Often an umbrella liability policy is the simplest and cheapest way to protect your assets. If something happens that you are liable for, the LLC won't make much difference.
Thank you for the resopnse. We will have two duplexes at the end of this transaction. I do not know if that makes a differance. I am also going to have an umbrella coverage as well.
Thank you everyone who has posted.
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