While most of my time is spent creating living wills and trusts for clients who are mindful of their financial futures, investment LLC’s have become a large part of our work as well. For those investing in property in Arizona, establishing a Limited Liability Corporation to keep your personal finances protected.
Why Do I Need a LLC for Property Investments?
Establishing a LLC will ensure you the legal protections of a corporate entity without the strict regulatory filing restrictions under other business entities. Should you chose to invest in property without establishing a LLC, you and your family’s personal finances assume all of the risks of liability in the event that there is a lawsuit.
How Do I Set Up a LLC?
Talk to us about establishing a Limited Liability Corporation for property investing. You’ll need someone with extensive experience in this field in order to set up the correct business entity and the correct moment. You’ll need to purchase properly in your own in if you’re seeking bank financing, however you can legally transfer the property to your LLC after the closing by filing a quit claim deed. Let us help you will all of this, and the transfer of the property to the LLC.
How Will I Be Taxed?
You will be filling taxes under the LLC, which means you will be taxed as a sole proprietor. You will not pay taxes based on the income of the LLC but on your share of the loss and profits on the investment property.
Can I Make Multiple Investment Purchases on One LLC?
You will need to form a separate LLC for each investment purchase that you wish to make. This will protect you from Spillover Liability, or the possibility that a legal matter on one property could ‘spillover’ to another property owned under the same LLC. Banks might also require a separate LLC per purchase to lower underwriting risks.
For more information or to make an appointment give me a call directly at
3055 E Waterman Way
Gilbert, AZ 85297