Realtor · Dallas, TX · Member since 2018 · 14 posts · 8 votes
Hi, my husband and I recently purchased 2 duplexes in the north Texas area under our names. We are wondering if we should put the leases under our LLC as a way to protect ourselves? Is there any tax benefits for leaving the leases under our name or LLC. We are brand new to this and bigger pockets’ podcast and this forum has made a huge impact on our lives and changing the trajectory of our future. Cheers to more rentals and possible flips.
Thank you in advance for your advice.
Rental Property Investor · Doylestown, PA · Member since 2008 · 1k+ posts · 1k+ votes
8y
@Deba Douglas - there is no right answer on this. If you go the personal name route make sure you get a large umbrella policy. I personally use LLCs and LPs for my portfolio and have a personal umbrella in case the "corporate veil" is pierced. Regarding financing, holding your properties in an LLC name is more difficult but not that difficult. The bank just makes you sign a personal guarantee which is what you'd be doing anyway if it was in your personal name. I have worked with several national lenders that allow LLC loans, don't require W2s or tax returns. Loans that are specifically designed for real estate investors.
Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
8y
@Deba Douglas for legal advise talk to your AP Attorney, and then talk to your CPA about tax matters. Their is a reason you build your team. Use them. If you don't have them, get them and use them. Only a lawyer will be able to give you true legal advise and your CPA the tax issues to your plan.
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
8y
@Deba Douglas there are no tax advantages. LLCs are a pass through for taxes. The myth with LLCs is that it will protect you from a lawsuit. This is simply not true.