Q: Is it make sense to have rental property lease on LLC name even though rental prop. title is only owned by me not LLC?
I own a rental property and have opened LLC so need advise to have lease on LLC or not? Whether it would help me from Liability issue?
A: You really need to shut down with a lawyer to review the facts. I personally rent a second home of mine out in my own name, but that is probably a bit of the cobbler's children having no shoes. Many suggest that it is best to use an LLC as the leasing agent, so that you increase your protection from disputes with tenants but can still sue in your own name as the owner of the property for unpaid rents. I'm not sure that really works against a persistent tenant, but it seems to work in real life. Also, sometimes there are tax reasons to manage the property from a non-passthrough LLC, though the new tax code may make that an anachronism. There are inheritance advantages to putting title to the property in an LLC, but that isn't really your question. Your best bet is to sit down with a lawyer for an hour and review it.
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