Limited Liability Company for your investment property

An LLC (Limited Liability Company) is a crucial component of asset protection, especially when it comes to investment properties. In today’s litigious society, isolating assets into separate LLCs helps protect each property from liabilities associated with other properties and business activities. Generally, you can have one property per LLC to maximize protection, but that’s not always necessary. Everyone’s situation and asset protection strategy will vary, so a personalized approach is always best.

LLCs are an inexpensive and effective way to safeguard your investment properties from each other, while also shielding your personal assets from potential liability tied to your real estate investments. You can transfer a property from your personal name into an LLC using a simple warranty deed. Whenever possible, it’s advisable to close on a property in the name of the LLC from the beginning. This offers added privacy, as your personal name will not appear in public records at the county recorder’s office when the deed is filed.

In most cases, you’ll want the LLC to be formed in the state where the property is located. Alternatively, a foreign registration of an LLC formed in another state may be an option to ensure adequate legal protection from potential litigation brought by tenants, contractors, or other third parties.

At KKOS Lawyers, we work with clients nationwide, forming LLCs in all 50 states. Our licensed attorneys are highly experienced in structuring LLCs for income-producing properties. We ensure that all documents are properly drafted, and provide you with the highest level of asset protection for both your real estate investments and your personal wealth growth journey.