Updated about 7 years ago on . Most recent reply
LLC for Investment Properties
Hello all,
After doing a lot of research on LLC's for investment properties, I luckily came across this forum. In 2013, I created three LLC's for my three investment properties and did nothing with them. I did not know enough then, but I am educating myself now. I used one of the online services out there to create the LLC's and thought that was all I had to do. I am trying to organize everything now and make sure it is done the correct way.
All three of my LLC's are in NY because the three properties are in NYC. I see that the LLC's Operating Agreement is what structures the LLC in a way that protects my assets. My husband and I created the LLC's for the protection LLC's offer (if done properly). I would appreciate any advice on getting my LLC's in order. After reviewing the information the company that set up the LLC's provided me, my husband and I are the managers of the LLC. Is there a basic operating agreement I can use if it is just me and my husband for the purpose of protecting our assets? I want to figure this out before doing the deed transfer. Two out of the three properties do not have a mortgage, and those are the two I am focusing on now.
Thank you guys for any help and/or information you can provide!
Most Popular Reply
- Tax Strategist| National Tax Educator| Accepting New Clients
- 4,499
- Votes |
- 3,749
- Posts
I would recommend chatting with a NY state attorney. How it's structured and what needs defense is really dependent upon your specific situation.
I agree that the LLC's should be where the properties are.
However whether each needs it's own LLC - or if moving them into a combined LLC/Partnership makes more sense if for your attorney to decide.
From a tax standpoint there is no beneficial difference with the properties being in an LLC/Your name - however I prefer them being help in a partnership. Just for cleanliness, I think it has less audit risk, I like the rentals being off of the 1040.
