creating and paying your own LLC
after listening to last weeks podcast and read in about investors of buy and hold properties, that create a property management LLC and use the LLC for their properties... it got me thinking.
I liked the idea of it. Not sure how it would effect taxes or evictions. But I like the feeling of " one degree of separation" that the property management LLC potentially provides between The tennant and I as well as legally should something happen.
I was talking with some other investor friends who brought up creating another LLC for handyman/ construction work. So that when you odd jobs or smaller stuff needs to be done on the rentals you can then pay yourself to do the work And invoice that LLC which would then be an expense for tax purposes. This is in lieu of doing it yourself anyway and not getting the tax benefits or having to pay someone to do it...
So my questions are...
Is the property management LLC worth the trouble for a smaller time investor. (Only one property so far but would love to do 10-15 later on)
How do the taxes and evictions work if I use that property management LLC for other investors properties?
And lastly is the contractor LLC legal? It sounds like a lot of paper work for save a small amount of money for a small time investor like myself.