Should I form an LLC for my rental properties?

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Should I form an LLC for my rental properties?

I have 10 rental units. I am getting
married this summer. Should I form an
LLC to protect my assets?

Asked on January 18, 2018 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Forming an LLC is highly recommended, since it will protect your personal income (your residence; personal vehicle; money in the bank; etc.) from the vast majority of debts relating to your rentals. (No protection is perfect; you are liable for any debts you personally guaranty, or if you personally do something wrongful, such as if you personally defamed some ex-tenant by posting untrue negative remarks about them.) Landlords can be liable for not properly returning security deposits, for injuries to tenants from not properly maintaining property, for debts owed to contractors or utilities, etc.--protecting yourself from these and other sources of liability is a very good idea.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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