Creating LLC for Rental
Hey BP,
I've read a bunch of posts, and listened to a few podcasts relating to whether or not you should form an LLC for a property. There are arguments on both sides, and I'm still leaning towards creating one. I guess what I'm looking for here is feedback on my reasoning. Planning on partnering with my cousin on a property and since obviously we file separate tax returns, I figure it'll be easier to manage profit sharing through the LLC.
Whether or not we buy the actual property through the LLC is to be seen, but based on the bit of research I've done, that is unlikely. I briefly spoke to a lawyer that recommended we create an entity for each individual property, so if anyone can chime in on that. That part does make some sense, especially since the first property we're looking at is out of state and it would cut back on legal fees to just file in that state.
My thought process then is to create an LLC for the property, open a bank account for the LLC where rent will be collected and any expenses(repairs & renovations etc) will come out of.
I understand that no one will directly give me legal advice on here, but just in general any feedback would be greatly appreciated!