Property Manager · Chattanooga · Member since 2019 · 7 posts · 1 vote
Hello Everyone,
I'm planning to setup a short-term rental in Fort Myers. Do you know of any lawyer's in the area that have helped setup LLC's or the legal structure for short-term rental owners to provide liability and personal asset protection? I understand that the property will need to be owned by the LLC. Still considering whether just beefing up the insurance protection and that alone would be best. Legal contacts would be very helpful!
Setting up the LLC on SunBiz is pretty easy and self-explanatory on how to set it up. You have to think about how you are funding the deal. Unless you are paying cash or using a hard money lender you will likely be buying the rental in your name anyways.
Property Manager · Chattanooga · Member since 2019 · 7 posts · 1 vote
6y
Thank you all for the advice so far and the contacts. For funding I'm thinking either paying cash or financing through either a bank or a partner. Still in the early stages of figuring this out locally. In my original post I should have mentioned that another reason I'm looking for an attorney is to help setup an STR in TN that my partner already owns. After thinking over it more it seems it would make most sense to find an attorney in TN rather than here since the local laws will preside over the property and what happens there. Would you all agree? Also, is an LLC the best way to protect yourself? What methods do you all use to protect against personal liability? As you can see, I'm new to this and trying to figure out how to reduce the risk to my family as much as I can before jumping in.
Real Estate Broker · FL · Member since 2018 · 149 posts · 96 votes
6y
Hey Jeff, Thanks for the update. I have spoken to and worked alongside a lot of investors and they all have different opinions about legal formations and ways to mitigate risk. My thoughts (not an attorney or accountant) but if you can buy in an LLC then do so, but if not then just buy it in your name. The biggest challenge is finding a deal. This is the biggest challenge and your biggest opportunity for success. From personal experience, I've learned to not be too concerned about defense, especially if there isn't anything to protect. Again, others may be more qualified about their recommendation, just my thoughts.