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In May of 2011, I setup a LLC in the state of New Jersey. The

 
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Customer Question

In May of 2011, I setup a LLC in the state of New Jersey. The original purpose of that LLC was to create a structure to provide business management consulting services. I have not conducted any such business to date.

I have 3 rental properties which I would like to transfer ownership to an LLC to protect my personal assets.

Can I leverage my NJ LLC to act as the owner of the properties, or should I create new LLC structures? And What is the benefit of one option over the others, and what are the risks if any?

 

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State/Country relating to question: New Jersey

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Submitted: 305 days and 13 hours ago.
Category: Business Law
Value: $25
Status: CLOSED

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Expert:  SeekingtoRenderAid replied 305 days and 13 hours ago.

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. Yes, you can amend your Certificate of Formation to broaden the purposes of your LLC to "any legal business activity." But, I would actually create separate LLC's for each property. You are looking to limit your liability in the event of a problem with a property. So, in addition to sheltering your other personal assets, it's a good idea to separate each of these properties and your consulting business so that a problem with one does not taint the others in any way. The risks of putting all three properties in one LLC and/or with your consulting business is that it puts all of them at risk for a problem with only one.



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Expert TypeAttorney
Category: Business Law
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