Privately Owned To LLC?
Hello All,
My husband and I own 5 rental properties in Pa. We are interested in becoming an LLC to protect our interest.
I have seen several websites where you pay for them to file the papers for you. Is this necessary? Can u file your own papers? Once the papers are filed, do we have to transfer the titles to the LLC? How is this done?
You can easily do it , grab yourself a good book about it at the library or new. The problem with any of those books is they all leave something different out of the equation, so read a couple of books and talk to your CPA. If you can afford it I would put each under an LLC. Check your state web site for the local rules. Also you might think about them all under a corporation. Can save alot of money. 8-)
MsG...
I am not an attorney, this is not legal advise. It is just my opinion based on my knowledge/experience/training. I am assuming it is your interest to protect your properties from some of the many possible problems, which might.could occur. By putting them all in an LLC or a C or S Corp, will protect you from liability.It will not protect all your properties except from something where you personally have liability. It is like putting all your eggs in one basket, and dropping a big rock in on top of them, They all get broken.
If you can file one C corp or one LLC. Then have each of your properties as seperate companies owned by your C corp or LLC. Then if you see your having a liability problem with one, make it it's own C corp or LLC, amd make it stand alone. Then if you can not work out your problem, you can lose the one (if you have to) without affecting the others. Hope this helps solve your problems, I like a C corp over the LLC, as a C corp can build credit whereas according to all I have been taught an LLC can not. On the other hand there are some fun things that can be done with an LLC, that I truly appreciate too, so ??? Good luck to you.
Wow, after reading through the archives I didn't think my ? would be answered seeing it had been asked many times before--thanks.
I did read each property should be under it's own LLC-- what kind of name do you use for the LLC?
What can you do if the morgage lender refuses to accept LLC?
I am learning so much here and I'd like to
thank you all
MrsG...
Re; naming each one is not difficult. Your 2012 Maple street house could be 2012Maple LLC, your 124 Go street could be 124 Go street LLC. Etc.! I would if I were yiu have (as stated before) have one LLC or Corp, and have each property in its own as a DBA operating under the parent company. If you run into trouble with it make ut a seperate company and liquidate it if you can not work out the problem. A DBA is cheaper to set up and operate and provides you the opportunity yo move quickly on it if need be, You can fo the same with each one in a trust of its own with low cost to set up, and the lender can not prevent your putting it into a trust, and you can still seperate it from your others if you want/need to at any time. Good luck~
[ Edited by ozzie on Date 03/31/2004 ]