CPA VS ATTORNEY which do you need more?

Question

So I have a rental property currently under my name. I’m getting ready to move it to my LLC. Should I speak to a CPA or an attorney before making any moves if so which one is more important. Thank you

Chris Mason · Answer

Most of my clients with one rental property do not have a lawyer, do not have an LLC, and use a normal CPA.

You aren't Donald Trump. (Yet?)

Jason Marino · Answer

The response to this question varies. I work closely with a real estate accountant, and I believe that both professionals are necessary partners for real estate investors that would like to scale up. For a straightforward single member LLC to be set up, I would say that using an attorney would be the more useful professional to assist you. You may be able to set the LLC up yourself, but the attorney will likely be necessary in order to create an Operating Agreement for the new entity.

Melanie Thomas · Answer

Attorney for your current issue. However, its important to have both a CPA and attorney in your corner. Good luck and happy investing!

Account Closed · Answer

Your LLC protects you only if you have an Operating Agreement and you follow it the way ducklings follow a mother duck. Most people don't create an Operating Agreement for their LLC and that's a big mistake. Of those who have an Operating Agreement, most don't follow it precisely which negates the value of an LLC anyway. 
Always use an attorney, not an online source, for something so important as doing an LLC correctly. Use someone who will defend your LLC in court.

Most lawsuits run about 2 years and cost $50,000 so if your equity after selling your property is more than about $100,000 you likely will get sued, eventually, and should have an LLC. However, it's cheaper to have umbrella insurance and solve that problem even without an LLC.

And that's all I have to say about that. (Forrest Gump)

Chris Seveney · Answer

@Rudy Nieves

It’s like asking if you neeed your heart or brain to survive - the answer is you need both as they do two very important and separate functions

Eliott Elias · Answer

CPA and lender.

Chris Picciurro · Answer

I would start with you attorney (and I am a CPA) and lender to make sure transferring title does in fact create the asset protection you are looking for.

Lawrence Potts · Answer

Both.

CPA’s will go over the taxable benefits

Attorneys will go over the legal benefits.

But they both need to be on the same page as far as what your plans are. I’d do a meeting with both and come up with a plan together. LLC’s don’t necessarily mean protection and don’t necessarily mean taxable immunity.

Yvonne P. · Answer

I was told the reason to have an LLC in place is for the legal protections it provides to the investors personal assets.  What is your opinion on that thinking?

Bob S. · Answer

CPA,

CPA VS ATTORNEY which do you need more?

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