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
Rules for Landlord while Evicting a Tenant
To file tenant eviction case against a tenant, make sure you have served a written notice, especially because it is part of the termination statute of the state. If the ...
READ MORE
Car Accidents and Law
Car injuries signify the majority of accidental injuries statements in the United States. According to the National Road Traffic Safety Management, a car incident occurs in the U.S. every ten seconds ...
READ MORE
How a real estate attorney can help you during your home purchase
There are different kinds of real estate transactions such as commercial leases, residential rentals, single-family home, and investment property transactions. To make sure that your real estate transactions run smoothly, ...
READ MORE
Roommate and late rent payment?
Living in a house or an apartment with a roommate can be fun, especially if that roommate is your friend. However, when your roommate pays rent late, your friendship might ...
READ MORE
Dealing with your insurance company
If your house gets damaged by fire or other disasters, you can look to your insurance company for reimbursements. But your success of getting relief from your insurance company may ...
READ MORE
How to deal with your business debts
Around 90 percent of businesses fail before they even reach ten years. And in this challenging economy, it would be normal if your business would dwindle down to failure. This ...
READ MORE
Affordable DUI attorney
Traffic violations don't seem to be all minor offences since they need major ramifications within the future. Reckless driving causes most of the traffic accidents and to stop that, traffic ...
READ MORE
Negative consequences of getting traffic ticket
Will traffic tickets lead to imprisonment? This may be the most negative consequence for getting a traffic ticket, but usually, only those convicted with serious traffic violations have high possibility ...
READ MORE
Alimony
Alimony means the financial spousal support that the financially strong spouse pays to the other after the divorce. Alimony law has been made because in the earlier times women did not ...
READ MORE
Important part in your dui case
You might not agree with the results of the police report for your DUI case the first time you see it. The report contains the results of the field sobriety ...
READ MORE
Rules for landlord while tenant eviction
Car Accidents and Law
How a real estate attorney can help you
Roommate and late rent payment?
Dealing with your insurance company
How to deal with your business debts
Affordable DUI attorney
Negative consequences of getting traffic ticket
Alimony
Important part in your dui case