We own a condo and are renting it out. We opened an LLC , but can't put it into it because they will call in the loan. My Partner thinks that if we rent thru a company with the LLC name it will cover us Incase someone gets hurt. I say that because we own it, we can still be sued. Who is correct?
How would an LLC protect an asset it doesn't actually own?
You could actually be piercing your own corporate veil by having an asset owned by one party and all it's correlating expenses/income owned by another party (the LLC).
There's literally no purpose to the LLC unless the rental is in it.
And yes the bank COULD call the loan, but it's not super likely.
And also and most importantly- I'm not an attorney, you guys should talk to one and or get a good umbrella policy.
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