“Should I put my property in an LLC?” I get asked this often. Putting an investment or rental property into a limited liability company (LLC) can be a fantastic way to protect your personal assets from any liabilities of the property(ies). If you are thinking about putting an investment or rental property into an LLC, or if you already have, there are a few things that you need to keep in mind.
Why Your Business Should Have an LLC
Before I get into that, let’s recap what an LLC is and why it’s a good thing to have. An LLC is a legal business entity. In most cases,If someone sues an LLC, only the assets of the LLC will be subject to liability in that lawsuit. The personal assets of the business owner should be safe. For instance, if you own an LLC and get sued, you can generally rest assured that your personal assets will be protected. This includes your personal bank accounts, residence, and all your other personal assets. In terms of a rental or investment property, it works the same. If you form an LLC and somebody gets injured on the property and wants to sue for damages, they would have to sue the owner.
Who is also the LLC. In fact, they would only be able to collect from the assets of the LLC. Furthermore, the purpose of having an LLC is for protecting your personal assets from the liabilities of the business.
In short, this episode of All Up In Yo’ Business is about why you should put your property in an LLC. Be sure to check out the full video to learn more! Additionally, contact us today if you need help with protecting your LLC. Also, be sure to subscribe to our YouTube channel for more All Up In Yo’ Business!
Want to learn more about LLC’s? Check out: How to Transfer Property to an LLC