Protecting Assests Without Transferring the Deed

Member since 2022 · 42 posts · 25 votes

I live in DC and want to rent out the house that I am living in today. It is my understanding that I cannot transfer the deed into a LLC without paying a huge transfer fee. Is there anything I can do to protect myself from potential legal issues? Ideally, I would have liked to set up a LLC, but that doesn't seem reasonable when considering the fee associated with it.

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Kevin Sobilo

Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes

@Andy Vasquez, purchase an umbrella insurance policy for liability coverage.

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Andy Vasquez
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Member since 2022 · 42 posts · 25 votes
3y
Thank you all for your help. Looks like there is no point setting up an LLC. As such, do I apply for the BBL license in DC using my SS, or should I get an EIN?
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Richard H. White II
Member since 2022 · 9 posts · 3 votes
3y
Here are some exceptions to the recording tax.
https://otr.cfo.dc.gov/publica...
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Quote from @Andy Vasquez:

I live in DC and want to rent out the house that I am living in today. It is my understanding that I cannot transfer the deed into a LLC without paying a huge transfer fee. Is there anything I can do to protect myself from potential legal issues? Ideally, I would have liked to set up a LLC, but that doesn't seem reasonable when considering the fee associated with it.

Just get an umbrella insurance policy.
You dont want to own property in an llc in DC anyways as you would automatically be subject to rent control if you did
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Jack Seiden
Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes
3y
Quote from @Andy Vasquez:

Thank you all for your help. Looks like there is no point setting up an LLC. As such, do I apply for the BBL license in DC using my SS, or should I get an EIN?

S.S. An ein is only obtainable through an llc. My advice would be to split the difference and just over insure, have 1 mil in assets get a 2 mil umbrella, have 2 mil, get a 4 mil. The other big benefit to an umbrella is it protects you against all aspects of liability risk, people get so worried about rental properties, when by farrrr the biggest risk is auto related.
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