LLC for Multi Family Property

[Vivek R.]

Hi,

I just bough my first 6 fam unit in RI. I am thinking of forming an LLC soon. I am wondering if folks can answer few basic questions :

1) I am based in MA - Should I form LLC in RI or MA?

2) Is forming LLC is a prudent think to do to reduce personal liability ?

3) Will I have to file return for the LLC every year ?

4) What will be the process of transferring the deed from me to the LLC? Can I do it myself ?

[Greg Downey]

Preface, not an atourney, but these are pretty simple/generic answers.

1. You need to form the LLC in the state that the property is in. So.....RI

2. LLCs are widely accepted as great ways to limit personal liability. Always consult an actual atourney

3. Yes, you have to file a return for the LLC every year. This is part of running a business.

4. You can typically transfer the title to the LLC through a title company for minimal fees. You will want to do some research here and make sure that you are comfortable with the (albeit very low) risk of triggering the DOS clause that is in most mortgages.

Information about LLC formation and the basic ins-and-outs is readily available all across BP and in the podcast. I would recommend taking a bit of time to research and you should get most, if not all, of these answers and more.