Should I Put My Rental Property in an LLC?

When you have assets such as rental property that are going to need to provide you with cash flow throughout your retirement years, you’ll want to look into some level of asset protection at some point.

When it comes to rental real estate, the Limited Liability Company or LLC might be worth considering. However, the methods and strategies you use will depend on what you have at risk and certain risks that you might be creating yourself.

More specifically, I discuss:

• Setting up an LLC prematurely
• What is asset protection?
• Determining what assets to protect and how with examples
  • Basic asset protection techniques
  • What is a Limited Liability Company (LLC)?
• Benefits when used for rental property
• What does an LLC not do?
• How is an LLC commonly used for rental property?
• How can an LLC provide asset protection? - “Inside” & “Outside” liability
• When might you consider putting rental property in an LLC?
• Having your Revocable Living Trust own an LLC used for rental property
• Asset protection techniques to explore before creating an LLC

Resources:

• Access Show Notes and Sign Up for the Retired·ish Newsletter HERE
• Free Retirement Jump-Start Analysis 
• Ask Cameron A Question!

Key moments are:

00:00 Asset protection, LLCs, benefits, drawbacks.

04:00 You may not need an LLC for your rental property

05:38 There are no silver bullet asset protection strategies, even LLCs

07:37 Potential benefits of an LLC for rental properties

09:25 Tax return ramifications with an LLC

10:45 Potential drawbacks of an LLC and what they don't do for you as a landlord

13:46 How can an LLC actually give you asset protection (inside and outside liability)

19:17 When might you consider putting your rental property in an LLC?

22:29 Series LLCs

23:30 Consider having your Revocable Living Trust own your LLC