I just bought a large property in NJ that has a main house, an attached in-law unit (proper permits were obtained when it was built) and 5 garages. The prior owner ran a construction company out of the property while living in main house.
We would like to rent out some of the garages- in most cases it'll be for storage of cars or other items but there is 1 garage we want to rent to an auto-mechanic. For the in-law unit, we'd like to AirBnB it or rent it out temporarily until we move my aging mother in.
I was hoping someone could help answer a few tax/legal questions I have or point me to a high quality, reasonably priced resource:
1. We bought the property as individuals, but can we rent the garage to the mechanic as a LLC? Would we first have to move the property into a LLC in order to do that or just create the LLC and have the lease list the LLC instead of us as individuals?
2. What kind of insurance would you recommend we get given our plans? Should I just add a strong umbrella insurance policy in addition to homeowners?
3. Wondering if I can also rent the in-law unit under a LLC for protection (vs. under our names)
Thank you in advance so much!
What town is this home in? I am in NJ and am not an attorney. I think you need to talk to the insurance agent upfront as I am not sure because if the property deed is in the personal names, then how will LLC provide any protection as far as any legal claim? LLC may provide some tax benefits but most towns are getting very tough with this Air B&B thing. As best as I know, the lawsuits are filed against the deed holder of record at the county clerk's office.
@Jen Anderson any specific reason why you posted this in the Texas forum? I would guess this would be better in the New Jersey forum. Just a thought.
oops, didn't even notice I posted in a Texas forum on accident!