** # 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?
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