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 6 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.
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