Property under a LLC (investment, personal property, attorney, financing)

[Shikaka805]

Hi,

I know lots of companies and individuals put their commercial and residential properties under a LLC. However, do many people do this for a detached single family home that will be an investment? Is it worth paying the Annual California $800 Franchise Tax Board Fee?

Thanks for any help!

[bentlebee]

I just bought it under my LLC, but I'm in Florida.

[DMenscha]

Well the $800 is tax deductible

Ultimately this is an economic decision which only you can make. If you do a Delaware LLC, you can have "children" LLC's under it's wing for additional properties and pay only one FTB tax.

[jeffvivian]

I have had some investors do this for investment also becasue it severes the personal liability in a investment. I.E. if a tennant sues you they are suing the LLC they cannot touch your personal property. At least here is PA is what I was told.

[kensgirl]

This is a good point to discuss both with your accountant and also an attorney. Only someone familiar with your own financial situation can really advise whether this is a good option for you. Additionally, you need to think about how you're going to purchase the property. If you're financing it, are you financing as an individual? Or do you have the ability to finance as an LLC? Again, questions to discuss with your CPA/Attorney.