LLC Protection

Comments(6)

• 
  roberth17th March, 2005

  To put your mind to rest call the title company that your doing business with and ask them. They will tell you that this is a very common thing.
  
  Good Luck,
  Robert
  [addsig]

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  bgrossnickle17th March, 2005

  Why are you switching to an LLC? Is it for asset protection? I have my doubts about how much asset protection an LLC will provide when it is obvious that you and the LLC are intertwined on this property. Is the LLC buying the property from you or are you just giving it to the LLC? Who is personally responsible for the mortgage? (I know the answer) Best protection is to ask allstate for a personal liability umbrella that will cover your rentals.
  
  My personal belief is that Land Trusts and LLCs (If not keep as a total seperate entity from your person) are good for stopping the frivolous lawsuits, but when the pit bull mauls the baby they will find you and they will sue everyone involved, including you personally, and you better have damn good liability insurance.
  
  Brenda

• 
  InActive_Account17th March, 2005

  I have a LLC and a million dollar liablity for each property. Keeps me covered both ways.

• 
  bgrossnickle17th March, 2005

  Hooper, do you just get the extra liability on your property insurance policy? How much do you pay for the extra liability on each property, and what company do you use?
  
  Brenda

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  daveshea18th March, 2005

  What if I never switch the title or insurance to the name of the LLC, and just report all of the income and expenses through the LLC for tax purposes. I realize this probably invalidates the LLC for liability protection, but from a tax standpoint, if I properly report all of the income and expenses on the partnership return for the LLC, is this any problem?
  
  -David.

• 
  voyko3rd May, 2005

  You can put it into an LLC after closing. Tell them it is for "Estate Planning Purposes" I have never had a problem when worded like that.