rental properties
I have several rental properties and want to know if creating LLC's for them would offer me a good amount of liability protection? Also, I want to creat protection for the properties from liabilties from my own LLC business, if this is the right direction I should be going?
Re: rental properties
Make sure that after forming your LLCs (whether each property is seperate or all the apartments are contained in one) that you follow the formalities in maintaing the LLCs.
Mainly, sign your all your contracts (with vendors, contractors, tenants, etc) as the managing member and have your agents sign in the name of the LLC.
Also keep your annual registration current, keep annual minutes, and don't commingle assets.
Forming the LLC can be the easy part, whether you're in the habit of running it as one may decide whether a plaintiff or creditor will be able to "pierce the veil" and reach some of your other assets.
It's certainly worth doing, but it will take extra work to keep it up.
Re: rental properties
Make sure that after forming your LLCs (whether each property is seperate or all the apartments are contained in one) that you follow the formalities in maintaing the LLCs.
Mainly, sign your all your contracts (with vendors, contractors, tenants, etc) as the managing member and have your agents sign in the name of the LLC.
Also keep your annual registration current, keep annual minutes, and don't commingle assets.
Forming the LLC can be the easy part, whether you're in the habit of running it as one may decide whether a plaintiff or creditor will be able to "pierce the veil" and reach some of your other assets.
It's certainly worth doing, but it will take extra work to keep it up.
Re: rental properties
Make sure that after forming your LLCs (whether each property is seperate or all the apartments are contained in one) that you follow the formalities in maintaing the LLCs.
Mainly, sign your all your contracts (with vendors, contractors, tenants, etc) as the managing member and have your agents sign in the name of the LLC.
Also keep your annual registration current, keep annual minutes, and don't commingle assets.
Forming the LLC can be the easy part, whether you're in the habit of running it as one may decide whether a plaintiff or creditor will be able to "pierce the veil" and reach some of your other assets.
It's certainly worth doing, but it will take extra work to keep it up.
