June 23, 2022
Should you put Real Estate into an LLC?
In this episode, Chris Berry answers: Should you put Real Estate into an LLC?
Estate Attorney and Advisor Chris Berry of Castle Wealth Group answers questions on retirement and estate planning every Wednesday at 1pm. Register via this link or give our office a call at 844-885-4200.
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Is it wise to put real estate into LLC’s for liability protection? Welcome to Berry’s bites. Please join our host attorney and financial advisor Chris Berry.
So we’re talking about real estate limited liability company so we need to clarify between your primary residence and then rentals or second pieces of property your primary residence should never go inside a LLC because you’re going to lose your homestead exemption.
It screws it up from tax purposes that’s a no-no primary residence never goes into a LLC what we do a lot of times is we’ll put your primary residence into an asset protection trust but second pieces of property or third pieces of property or rentals. Typically we recommend to limit their liability they go inside of an LLC and LLC limits the liability it has to be filed with the state. You have to have articles of organization you have to have a tax id number and then you have to deed it to the property and then each year. Now you owe let’s say 25 to the state like every year and then I want to say at the state level it’s either 50 or 150 to set up any downsides complexity so it’s more complex more costly to set up typically we’d recommend a series of LLCs.
An LLC for each additional property and then we would put all of this into an asset protection trust so now like if you were to get sued because you got a car accident or if you were to need long-term care they could not come after your LLC’s which own your pieces of real estate. Thank you.