[Damon]

It’s a few ways to do it. An LLC can be for only property management so that’s one of several options.

One issue you run into is the level of complexity you want for what sounds like a simple thing. You can always insure against this.

That’s why I saw it’s worth it to pay a local real estate attorney for at least an hour of time and get legal advice about your options.

[Stacy]

You don’t need to do any of this at all. For liability issues, you can just get an umbrella policy which can cover your personal home, cars and rental property, as long as all these are covered by the same insurance company.

You will still have all the deductions with the property staying in your name.

Many, many landlords never put it in an llc.

You can always change to an LLC later if you really want.

Also, depend on how much the property has appreciated, it may be better to sell it capital gains free.

[Justin]

With having just one or two rental properties at a time I kept sole proprietorship and purchased umbrella insurance to cover my exposure (a lawsuit can’t reach my retirement accounts).

The insurer will also help me in court with any lawsuit thus discouraging frivolous lawsuits.

If I had more properties, then I would pursue an LLC and a more complete firewall.

After 19 years, this has worked well.

[Gina]

Broker here: I always tell my clients
To connect w an attorney and talk about these options recross management and mitigation. Personally: LLc yes.

If more than one rental, then a holding company w llcs.

[Arzoo]

from what I understand llc is to protect your assets – check with a lawyer.

[Ira]

1. Open a business account for any expenses related to the rental.
2. If you create an LLC, it is its own entity, not obligating you (and your personal assets in case of a lawsuit, for example) and you will name it.

The title is still under your name.
3. Create a trust and put the LLC in it.

[Author]

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