Do I need to create a LLC (or other company) to manage my rentals
2 Replies
Diego A.
Investor from Flower Mound, Texas
posted almost 3 years ago
Hi Experts,
I am new in managing rentals.
We have just expanded our portfolio to two single family home rentals.
The new tenant is asking me to provide a receipt, so that I just bought a receipt book but that make me think if I now need to have a LLC to have Limited Liability on my rental.
Thanks,
Diego
Arlan Potter
Investor/Accountant/Builder from Meno, Oklahoma
replied almost 3 years ago
You do not need to.
I owned 40+ single family rentals before I moved them to an LLC
Ned Carey
(Moderator) -
Investor from Baltimore, MD
replied almost 3 years ago
Thre aer lots of long discussions here about the pros and cons of LLCs.
Do you "Need" one? No. Is it a good idea , maybe. An LLC will not change anything regarding your taxes. You can deduct the cost of that recipt book for example, whether you have an LLC or not.
An LLC can add some liability protection. It is NOT a substitute for insurance. It will add to your costs and complexity of your business.