Why would a residential property be titled to an LLC?
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Why would a residential property be titled to an LLC?
Asked on June 23, 2009 under Real Estate Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
An LLC provides protection against liability as well as the ability to easily have owners with differing economic and ownership interests. It allows management to be divorced from ownership if that's what the partners want, so that one or two partners manage for all the others, or a professional manager is employed by the LLC. It also may allow the raising of money (such as via loans or lines of credit) without putting the partner's personal assets up as collaterol. Plus it can seem more "professional."
It would be very appropriate fora residential property which is owned as a second property or an investment property, including for rental purposes. It's less appropriate--though still legal--for a residential property used as a primary residence, since it couldn't take advantage of some of the tax benefits that flow to primary residences.
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