Has anyone used an LLC for to hold their rental houses? How many houses do you need really for the LLC to benefit you?
I have noticed that LLCs do have some fees to set up...etc.
When does an LLC really benefit one? What's the scenario? Flipping? Renting out or other?
I have an LLC for my unit and I intend to do the same for each going forward. As I understand it the LLC will protect me from anyone going after my assets if they sue. They are only able to get what is in the LLC. So for me, each unit will be its own LLC.
If anyone knows more please chime in.
@Joe Sz we have 8 units in our llc at the moment. There is alot of up side with taxes as well.
Down side, at least here in Indianapolis. If you go through an eviction, and you dont have a lawyer. The courts cap the total amount you can get from your tenant at 1500 bucks. This is not the fact if it's in your personal name.
@Joe Sz Truth is it's all personal preference. I didn't have my properties in LLCs until I had 15+ SFRs.
There are not many tax benefits as the entities will pass through to your own personal returns. The big thing is liability but when you have just a few units (with little equity) then there's not a big risk.
Attorney's will try to scare you by telling horror stories but truth is it's not common, especially if you have a solid team of contractors, agents, property managers, etc.
@Joe Sz My suggestion is work on owning properties before you get an LLC, especially if you're going conventional lending. Banks don't loan to LLC.
If you're looking for an LLC for asset protection then make sure you spend money on a good structure. Make it hard for them to even find out who owns it. A simple LLC with you and/or spouse on it will get punched through like tissue paper by plaintiff's lawyers
@jason....agreed that's what I also understand...
@Bryan...what are the tax benefits you have seen?
@Cameron....yes agree on all of your post....and this is why I havent gotten into one yet.....
@son your last paragraph is interesting....I have not seen anything how effectively hide everything...