LLC/Corp For Tax Deed Rentals?
Hello again!!!
I am about to receive my first Tax Deeds and was wondering if I could get some help here.
The properties (houses) have been vacant for years and I am interested in renting them out.
In AL. if taxes have been delinquent for 3 years the State will grant a Tax Deed with out warranty & then there is still another 3 year redemtion period. All the properties I am interested in have been delinquent for way over 3 years. I want to know, if interested in using Tax Deed properties for rentals should I go ahead and purchase these types of properties in my name and rent them out?
Or should I be considering creating a LLC or some other entity for protection?
If so, when should I be thinking about starting LLC/Corp before I file the deed or after the deed is filed and convey to the entity?
And which way is best for my situation above LLC or Corp?
You cannot avoid legal liability by changing the way you legally own an asset on rental property. The only way to avoid legal liability and the financial consequences of being negligent or committing a tortious act is by not being negligent or reckless in the first place, and therefore avoid being sued against.
And you cannot escape legal liability by incorporating except by not being liable in the first place.
Lawyers have concluded that all sorts of devices over the years used to shield people from liability almost all fail. They can slow creditors down but determination beats them every time.
Good luck
Well landairsea,
no one is talking about being irresponsible or negligent. The simple fact is that if a tenant gets hurt on a property (even if its the tenants own negligence ie...intoxication or some other irresponsible act) the property owner could be sued & held liable. All I am interested in is legally protecting my personal assets.
I am persuing rentals through Tax Deeds and I was just wondering if anyone out there does the same thing. And if so, was just anxious to hear comments on how they hold Tax Deed properties that are used as rentals & a little advice on when to start the entity before filing deeds or not?
This is probably best answered in the law/legal forum.
For what I recall there was suggestions for setting up a land trust to hold property.