LLC’s for Real Estate

[They're LYING To You... Stop Setting Up LLC's | Mark J Kohler | https://kkoslawyers.com/](https://tgre.notion.site/They-re-LYING-To-You-Stop-Setting-Up-LLC-s-Mark-J-Kohler-https-kkoslawyers-com-344722565ba748508267688db255ffa9)

The LLC Setup You NEED For Real Estate Investing | Chandler Smith

AceProperties + ChatGPT Perspectives

ThachNguyen: It's not necessary to get an LLC to own rental properties. I don't do it. What I do is I buy a lot of property in my own personal name, and then I basically get a big giant umbrella policy that provides insurance coverage for my entire portfolio. Plus, if you actually get a rental and you have a loan on it, the bank does not like to finance an LLC, especially on a rental property. That's what I do.
Doorloop:

Let's talk pros and cons of using an LLC for rental property, starting with the pros. It reduces your personal liability, pass-through taxation, which means that your LLC's earnings can pass directly to you, so the LLC isn't taxed on your earnings through the rental property, keeping your property separate and protected. If all your properties are under you or even the same LLC, and you're hit with a liability suit, your unrelated properties could be put in jeopardy. But if your properties are protected under their own LLC, then you don't have anything to worry about. That's because each LLC, like a person, is considered a separate entity.

Now for the cons. Corporations, including LLCs, do require additional paperwork. LLCs come with setup and maintenance fees, and you may pay additional taxes. Remember in the pros how I mentioned that LLC benefits from pass-through taxation that reduces your personal tax bill or at least keeps it roughly the same when you're a sole proprietor? But on the flip side, having an LLC in some cases can result in additional taxes. For example, some states have a title transfer fee, and other states make you pay Franchise Tax. Neither of these applies to every case, but they're worth being aware of.

Overall, what do you think? Should you put your rental property in an LLC?

Holding LLC’s

Pros and Cons of LLCs in Each State

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[How Many Properties Should I Put in My LLC? | Mark J Kohler](https://tgre.notion.site/How-Many-Properties-Should-I-Put-in-My-LLC-Mark-J-Kohler-44d932215f0b4b56a04eb23af4aa96e1)