Should You Create an LLC For Your Rental Property?
In this article, we’ll go through what an LLC is, how landlords can benefit from LLCs, and how to create an LLC for your rental property. We’ll also answer common landlord questions about LLCs.
What Is an LLC?
A limited liability company (LLC) is a business structure. You can create an LLC by yourself, with a partner, or with a group. If you own an LLC, you are a “member” of the LLC.
LLC’s are regulated at the state level, so the process of creating an LLC will differ by state. This article will provide an overview of the benefits of creating an LLC and how to create an LLC. We strongly recommend doing state-specific research to further understand how to create an LLC in your state, along with any specific fees and associated costs.
Who Should Create an LLC?
Any landlord can benefit from creating an LLC. Whether you have one property or several, you will benefit from pass-through taxation and protecting your personal liability.
LLCs can be especially helpful if there are multiple owners of a property. When you create an LLC, you’ll create an operating agreement in your rental property business plan that outlines the rights and responsibilities of each member of the LLC. This can help you seamlessly manage the property and protect each member of the LLC in case of legal trouble.
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