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Form an LLC for rental business?

Currently I own two homes in my name and hopefully I will be purchasing a third soon, the first two homes are being rented and as I move forward I intend to continue purchasing homes for investment/ rental purposes on a very small scale. I think at the most I would like to have 10 homes, more likely I will end up with 5 or 6.

Below are my questions

Would it be appropriate to form an LLC for this type of business?

How would I transfer my current homes that are owned in my name into the LLC?

Where can I go to learn more about the advantages and disadvantages of forming an LLC, specifically in regards to taxes and personal liability?

Thanks

Sam

Reply to
Sam
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your issue, you should probably use a different LLC for each property. A good insurance policy is better, though, if you need to choose.

because you can choose it to be taxed as a proprietorship or a corporation (including an S-corporation). Talk to your tax advisor about which would be best in your situation.

A deed should work. You should also document that the transfer is in exchange for an interest in the LLC. Check with your tax advisor to be sure the transfer complies with section 351 of the Internal Revenue Coe.

Nolo Press (nolo.com) has various books that might deal with this issue. Your best bet would be to talk to your own tax advisor and attorney, since everyone's situation is different.

Stu

Reply to
Stuart Bronstein

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