A properly formed Real Estate Limited Liability Company or Corporation can help mitigate risk and insulate from liability. For example, let’s assume that a rowdy party is thrown in one of your rental properties. You had no knowledge of the party, but one of the party-goers is injured during a fight that took place. If the injured party decides to sue and names you as the owner of the property. If the property was owned by a legal entity, your personal assets would likely be immune from the suit by the party-goer.
Why do I need an attorney to form a real estate LLC. or Corp. for my investment property?
The real estate attorney’s value is not only in the process of forming the legal entity, but rather in advising as to the appropriate business structure for your investments. Should you form one entity or separate entities for each of your properties? Is an limited liability company or corporation the right entity for my properties? What actions might jeopardize the protections offered by the entity? How do I transfer the ownership of property that I already own to the newly formed entity? These are all questions that can be answered during your discussions with an experienced real estate attorney.
What are the other benefits of using a LLC. or Corp. to hold my real estate ?
In addition to limiting your liability, a properly formed Real Estate LLC. or Corp. can also make it easier to take on additional investors or transfer ownership of the property. A Real Estate LLC. or Corp. may also allow for silent or non-disclosed owners of the property.
How much does it cost?
Please contact our office as entity formation is priced on a case-by-case basis.