I purchased a fourplex using a HELOC on my primary residence so technically we bought the fourplex "cash" with no mortgage. I feel I need to protect myself and get the property to be owned by an LLC...But I need STEP BY STEP instructions including how to start the LLC. How do I pay taxes on my LLC? Do I open the LLC in the state I currently live, or the state I own the rental property in? Should I co-own the LLC with my husband or is it best to do 49/51% or something for tax purposes? I need so much help figuring the business side out, then how do I transfer the title into the LLC of course.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
2y
What's the reason for the LLC? Even if you manage to be the first person in history to maintain the corporate veil of a tiny corporation. You won't save taxes or reduce liability. But you will increase costs in regards to insurance or lending..
You still risk losing the property to any liability that happens at the property or in your personal life. If your main point was supposed to be avoiding losing the property in a lawsuit, get an umbrella policy. If it was something else, skip it.