Is it better to put my rental property into a Trust or an LLC.?

March 25th, 2010 | by admin |

I am in the process of buying my first home/investment property. I do not want the home to be in my name in case someone would try to search for me. I’ve heard that I can put the home into a trust or an LLC. I plan on purchasing more investment properties in the future, so I’m curious as to which is a better option, and if anyone could give me more info on both?

Bingo. You are brilliant in even considering this because a lot of people invest and don’t think of the future.

I would recommend getting an LLC until you get about two or three properties than I would look into getting a Mother LLC. What this is; is an LLC that you can put your junior LLC’s under and you devide your properties accordingly.

The reason you do this is because if anybody sues you they cannot get to all of your properties because they would be in seperate LLC’s.

The other reason you would want an LLC is because you will not show as much incoming income and assets for tax purposes. You will also want to consult with a good tax accountant specially when you get to your second property and beyond.

Two good states for LLC’s are Nevada and Deleware. You can also visit :
( www.legalzoom.com ) they can also help you with any questions about this.

Wish you the best in all your endeavours.

Good Luck

  1. One Response to “Is it better to put my rental property into a Trust or an LLC.?”

  2. By e_businessolutions on Mar 25, 2010 | Reply

    Bingo. You are brilliant in even considering this because a lot of people invest and don’t think of the future.

    I would recommend getting an LLC until you get about two or three properties than I would look into getting a Mother LLC. What this is; is an LLC that you can put your junior LLC’s under and you devide your properties accordingly.

    The reason you do this is because if anybody sues you they cannot get to all of your properties because they would be in seperate LLC’s.

    The other reason you would want an LLC is because you will not show as much incoming income and assets for tax purposes. You will also want to consult with a good tax accountant specially when you get to your second property and beyond.

    Two good states for LLC’s are Nevada and Deleware. You can also visit :
    ( http://www.legalzoom.com ) they can also help you with any questions about this.

    Wish you the best in all your endeavours.

    Good Luck
    References :

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