** # Entrepreneur of the Week ** *** Post 4 - TO LLC OR NOT TO LLC ** Ask me no…

** # Entrepreneur of the Week ** *** Post 4 - TO LLC OR NOT TO LLC ** Ask me no…

** # Initiated week**

*** Post 4 - TO LLC OR NOT TO LLC **

I am often asked how do I own the apartments I own, my name or a company name?
The answer is usually in the name of a company…

I hold $ 250 worth of assets in each LLC, why? Because that's what I'm willing to lose in case of a tenant claim, there's not one right answer here, it's for my personal choice of risk management strategy.

By this method, sometimes it's one house in the LLC, sometimes two and sometimes three ..

In addition, I also have LIABILITY insurance on each property separately and also UMBRELLA INSURANCE that covers all assets in case of a tenant claim.

For anyone wondering how the houses are listed on a company name, a loan is usually not possible on a company name .. I take a loan on my name and after closing do QUIT CLAIM DEED, transfer ownership to the company name I own, it costs up to $ 100 and some of the title companies will even make you It's parallel to closing, that day!

For Israelis who own homes in the US, maintenance under LLC will prevent you from being taxed at source at the time of the sale .. So if you have a home in the US and you are about to sell it, it is better to transfer ownership to a company and then sell… …

What type of LLC?

If possible, I own homes under sole proprietor llc why? Because filing taxes for such an LLC number is usually simpler and cheaper than filing taxes as PARTNERSHIP LLC. However, sometimes I own a house or houses with partners, in which case there is of course no choice but to create PARTNERSHIP.

Hope I helped, don't pretend to be an expert yet, sure I have more to learn on the subject .. What do you think?

Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)

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Responses

  1. I wonder if it's okay that the bank is not aware that you are transferring ownership of your name to the LLC. The bank has given you a loan for the property you own and not the LLC.
    Another question: Is there a problem for an insurance company to insure the property through an LLC?

  2. Another amendment, if a foreign resident owns the property, whether in a single name or in the name of an LLC that has a sole partner, there will be no withholding tax on the sale, if the sale is to a buyer intending to live in the property (as opposed to an investor)

  3. LLC with sole proprietor as a foreign resident
    Is required to submit 2 additional reports (since 2018) which significantly micromanages the report so that it is not necessarily cheaper than several partners (each partner must submit a separate report)

    Regarding insurance on each property, I did not understand why you do separate liability on each property and not in one policy. $ 1M Liability Not enough for you for some assets? In the case of an insurance case of a claim you need to cross it out to justify the argument

  4. I just wanted to correct you- holding a property under an LLC owned by one person will not prevent withholding tax at the time of sale, because this type of company is considered a disregarded entity, meaning the IRS looks at the company owner as the owner of the property, completely neutralizing the company itself in the equation.

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