Source: Forbes —
If you’ve watched my online videos or read my books or blog, you’ve no doubt heard me talk about LLCs in real estate investing. The LLC, in my view, is a fundamental unit of privacy protection and asset protection. LLCs are not the perfect vehicle for every investor in every situation, but in most cases, if you hold rental property, you should know about LLCs and how to use them.
In my last blog post, I briefly explained a standard formula I recommend for using LLCs in real estate investing. I’ll provide more detail on that step-by-step formula in a future post. But for now, let’s talk about LLCs in general.
LLCs have a few advantages over straight corporations. First, they don’t create a taxable event when you move properties in and out of them (providing you make the proper tax elections). Second, they afford privacy protection, which I talked about in my last post. When people don’t know you own property, they can’t use that information against your interests. Period.
