Should I get a real estate attorney to form and get my rental properties into LLCs or is it fine to do myself?

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Should I get a real estate attorney to form and get my rental properties into LLCs or is it fine to do myself?

I currently own 2 rental properties and it’s suggested I place the rental properties into LLCs (another even suggested land trust + LLC) which I could easily do myself (form a LLC, quit claim each property into LLC). But before doing that I wanted to see if there is added value in getting an attorney as the registered agent to further protect against any “piercing the corporate veil”, or if I should warranty deed the ownership over so that the title insurance carries over, etc, or is simply having an umbrella policy all that I really need and this would just be overkill?

Asked on April 9, 2012 under Real Estate Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It is always recommended that an experienced attorney prepares the necessary limited liability company paper work and submits such to your state's secretary of states office. However, you can do so on your own as well. Having an attorney as the agent for service of process does nothing with respect to piercing the corporate veil of the intended limited liability company.

It is a good idea to transfer the rentals into the limited liability company that you want to create. Equally important is that you keep liability insurance on them. The title insurance policy will carry over since you have title in the properties and are simply transferring title to an entity that you will own and control.


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