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
What are the Dos and Don’ts when you are not able to pay rent on time
You don’t have to worry about getting evicted if you can’t pay rent on time. You won’t, not right away at least. It’s inevitable to run short on funds. It’s ...
READ MORE
Buying or Selling real estate property
If you are not an expert in buying or selling a real estate property, you need the help of a sales agent to walk you through the entire process. You ...
READ MORE
How to check your landlord?
Just as the landlord screens the tenants, you should also check out your landlord. Your landlord wants to know if you are diligent in paying the rent. You should also ...
READ MORE
Procedures when a law enforcement officer has reason to suspect a driver is intoxicated
Dui (DUI) means operating a automobile after consuming liquor or drugs that have affected a person's mental or engine skills. In most declares, a person will be considered "impaired" if ...
READ MORE
Alimony Legal Services
When a married couple gets a divorce, a family court judge may order one spouse to make monthly "alimony" or spousal support payments to the other, based either on a ...
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
Legal help while selling your home
Selling a home can bring up a lot of issues and could easily become a maze of processes. To make sure that you get your home’s worth, it would be ...
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
Too many people living in single rental unit….what to do?
Defining how many people can live in a rental unit is one of the biggest problems that some landlords have to face. The legally defined specifics vary per state. This ...
READ MORE
Not able to pay rent on time? Dos
Buying or Selling real estate property
How to check your landlord?
Procedures after DUI
Contact Affordable Lawyer
Alimony Legal Services
How to Deal With Zoning Problems?
Legal help while selling your home
Why should you buy investment property under your
Too many people living in single rental unit….what