Transfer property into LLC but not mortgage
Hey everyone, first post here.
We currently own 3 properties in Philadelphia. However, the first 3 were bought in our personal name (Mortgage and Title) and we are looking to transfer the title to an LLC. My main question is, will that give us protection from lawsuits incase someone gets hurt on the property?
The mortgage in our personal name which is fine, however it is the liability that we're trying to avoid. Will this move cover that?
Thanks
Most Popular Reply
Hi Paul.
I think that putting the property in an LLC is a great idea. A lot of the investors that i work with actually put every single property in its own individual LLC. This does alleviate personal liability, which is the greatest benefit. If there were to be any lawsuits for injury on your property that go beyond liability insurance, your personal assets are protected if owned by an LLC. Another attractive aspect to setting up an LLC, is pass-through taxation. All income will report directly to the owner's personal income tax. This is because the business doesn't have to file a separate tax return.
Hopefully this helps a bit!