Leasing Property To LLC Or S Corp
I’ve been told by my attorney—he doesn’t like Trusts--that I should own my apartments and commercial property in my name but lease them to my LLC, or form an S Corp to lease them. He says then I wouldn’t be liable in case of lawsuit. I'm worried this would mean more paperwork and hassle. Would this affect my ability to finance or insure, and/or the rates I’d pay? Would a Lease be a document I’d need to record, one that might cause lawyers to hesitate when deciding if I have enough assets to sue over should that become an issue? My main concern is that the titles would still be in my name, but he doesn’t seem to think that would be a problem.
I'm still waiting and hopeful--has anyone had experience with owning in your own name and leasing to your entity? I'd appreciate any advice about this. Thank you.
I would question your attorney further on this idea as it doesn't seem quite right. If you own the properties you are still liable for instance if you are in a vehicle accident and they want more money out of you. It doesn't matter who the lease is made out to, they are taking your property.
2ndly, depending on if you manage the properties yourself, or hire people to do it the courts may look upon your LLC as a farce and set it aside as irrelevant and used solely to hide assets.