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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?
Optional Information: State/Country relating to question: New Jersey Already Tried: Nothing
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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Thanks for allowing meto be of service to you. Please be aware that the information provided here isnot legal advice. Rather it is simply general information. All states have intricacies in their lawsand any information given is simply information only and specifically is notintended to be, nor does it constitute, legal advice. This communication doesnot establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Experience: Practiced law for 32 years; also business man