Should title to my real property be in an LLC name?

UPDATED: Oct 1, 2022

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Should title to my real property be in an LLC name?

I would like to form an LLC for my rental property. Must I re-title the property from my personal name to the name of the LLC? If so, why? I thought one advantage of an LLC is to limit liability in the case of a lawsuit. Wouldn’t any asset in the LLC be at risk in the event of a lawsuit or is having property title in the LLC name establishing legitimacy of the LLC?

Asked on May 19, 2019 under Real Estate Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

1) Yes, a property in an LLC is at risk in the event of a lawsuit against the LLC.
2) If you own the property in your own name, however, and there is some lawsuit arising out of the property (e.g. if someone is injured on it, from what they claim or allege is an unsafe condition), you personally can be sued, which means your personal income, assets, etc. are at stake--including the rental property, since in this scenario, since it's in your name and thus an asset of your personally. By having the property in your name, not an LLC, you are personally vulnerable to a lawsuit arising out of the property. To protect yourself, you should put the property into the LLC.

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 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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