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Updated almost 2 years ago on .
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Hi guys. I have a situation and need some guidance. I purchased a property using personal names, and the property manager is asking me to put it on LLC instead before we sign the contract. Yes, I know it takes time and effort for people to get to know each other to find common ground, but please don't get me wrong; I'm not asking for a free CPA gig. Instead, suppose you have and are willing to advise in your spare time to help me understand some of the future tax benefits and implications I'll face down the road. All responses here are priceless to me. Thank you.
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@Emil Kostov, there are no tax benefits for putting the property within an LLC. The simplest LLC a single member LLC is a disregarded entity by the IRS and the taxes are rolled right into your personal taxes as if it didn't exist at all!
The main purpose of having an LLC is liability protection especially to protect your other assets. Many people skip the LLC and just buy an umbrella policy to handle this issue.
Why does the property manage want you to move the property into an LLC? That really should not be any of their concern.