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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9708
Experience:  30 years of corporate, litigation and international law
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I have a rental property in California. I would like to protect

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I have a rental property in California. I would like to protect myself from liability as I have seem friends and family sued by tenants. I would like to structure an LLC on top of the umbrella insurance policy I opened.

For the LLC, if the bank account used for the LLC is my own personal checking, will that void any liability if for instance, the tenant falls down the stairs (due to their own fault)? I have heard both sides, saying it doesn't matter and that it does. I know for tax purposes, I don't need an EIN because the LLC will be a transparent entity. What would you recommend? Should I open a new bank account in the name of the LLC? Inform my title insurance company? Anything else? Thank you for your time.
Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. In order to protect yourself you should obtain an EIN for the LLC and open a bank account in the LLC's name. If you use your personal account for the LLC that provides a basis for what is called "piercing the corporate veil" and holding you personally liable for the acts of the LLC.

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Richard - Bizlaw and other Business Law Specialists are ready to help you
Hi Jake,

I'm just following up with you to see how everything is going. Did my answer help?

Let me know,if you have any more questions.