An LLC or a limited liability company will benefit you in many ways if you decide to buy real estate properties. That’s because it will provide plenty of protection in the long run. Its purpose is basically to protect you from the potential legal liabilities that your properties will have to endure in the future. LLCs prevent any unfortunate event, take away all that you have worked hard for.

Here are its advantages:

Because it will be your responsibility if an accident happens on your property, what an LLC does is to protect your personal assets such as bank accounts, stocks, vehicles, retirement funds, and other real estate properties from the litigation.

LLC does allow a profit distribution that is flexible among its members.
It will provide a temporary protection if a plaintiff attorney will conduct an asset search on the members for a lawsuit.
Tax wise, an LLC will classify your property as a pass through company. This means you’d be avoiding double taxation.
It allows an easy transfer of real estate percentages to whoever you wish to award it, e.g. to your children, wife, parents, friend, etc.

Here are its disadvantages:

It is expensive.
It’s time consuming.
It involves a lot of paperwork.
Some lenders will not grant loan on LLC companies.
It’s not ideal for everybody who has investment property.
Not all states recognize LLC.

If you’re not sure how LLC can truly benefit you, consult your state attorney right away.

Related Posts
Child Abuse
Kid misuse is the actual, sex-related or emotional maltreatment or ignore of kids or kids. In the United States, the Centers for Disease Control and Prevention (CDC) and the Department ...
READ MORE
Defenses: Most often raised to drunk driving charges?
Drunk Driving is the act where in the driver drives the vehicle under the influence of alcohol or drugs. This is to such an extent that the person does not ...
READ MORE
Know Civil lawsuits to avoid them
If you are taking a proceeding or a case of some wrong act, it might be known either as "civil" or may be "criminal" suit. Scrutinize these 2 forms of ...
READ MORE
Workers Compensation Act
The Longshore and Harbor Workers Compensation Act (LHWCA), administered by The Office of Workers Compensation Programs (OWCP), provides for compensation and medical care to certain maritime employees (including a longshore ...
READ MORE
Why should you buy investment property under your own name?
Because it is your investment, you can always choose where to name your investment property. If you so decide to put your property under your name, below are the advantages you ...
READ MORE
Top reasons that can severely affect your landlord business
There are mistakes that will definitely affect your landlord business and these are what you should avoid. 1.Tenant discrimination intentionally or unintentionally. This warrants a one-way ticket to a legal proceeding. ...
READ MORE
Traffic ticket? Decide Fight for it or Pay for It
Traffic tickets have underlying penalties besides the fine, which are usually on the citation. Your driver’s license may be revoked or suspended, depending on the severity of the charge and ...
READ MORE
Risks and Benefits of buying a foreclosed property
Buying foreclosure property may give you great discounts; however, there are various underlying risks to it too. Benefits Pre-foreclosure home owners want to sell their houses in a hurry to avoid foreclosure, ...
READ MORE
How to Deal With Zoning Problems?
Right location is an important factor to running a successful business. A strategic location can give you the right customers and publicity. You may find the right location perfect for ...
READ MORE
Different investment property purchasing options
Investing in real estate property has become a trending way to earn a profit for the last 50 years. It is important to learn the different property purchasing options and ...
READ MORE
Child Abuse
Defenses: Most often raised to drunk driving charges?
Know Civil lawsuits to avoid them
Workers Compensation Act
Why should you buy investment property under your
Top reasons that can severely affect your landlord
Traffic ticket? Decide Fight for it or Pay
Risks and Benefits of buying a foreclosed property
How to Deal With Zoning Problems?
Different investment property purchasing options