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Andrea, Esq.
Andrea, Esq., Attorney
Category: Legal
Satisfied Customers: 12554
Experience:  25 yrs. experience in family law, estates, real estate, business law, criminal defense, immigration, and employment law.
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A client has 12 rental properties and are not protected as

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A client has 12 rental properties and are not protected as a corporation. Do reccomend s- corp or LLC for each rental property to protect owners liability?

Hi, my name is XXXXX XXXXX I will be glad to assist you,

 

 

 

Would he be putting all properties under one entity ?

 

What does he want to achieve ?

 

 

Customer: replied 3 years ago.

No- the concern as I understand it is all properties are exposed unset one entity and don't want to risk other properties of there is a law suit

Hi, Henry,

 

 

If the only consideration is shielding each property from any liability incurred by the other properties, and one individual owns all 12 properties, then it will not make a difference which entity he chooses, as long as he sets up one LLC or Sub S Corp. for each property. Both the LLC and the S Corp afford the safety from liability and both are "pass through" entities, so that the income is only taxed once.

 

The only real difference would be if there was more than one owner in which case, each member of the LLC is considered to be "self-employed" and each would have to pay a self-employment tax. In an S Corp., only the owner-employee pays a self-employment tax while the remaining shareholders do not pay a self-employment tax.

 

So, if the properties are owned by only one individual, there is no real difference whichever entity he chooses,

 

 

Please be kind enough to rate Excellent Service" so that I receive credit for assisting you, it will not cost you anything additional to give me a positive rating, and that is the only way I can receive credit, Thank you for understanding,

 

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Thank you for allowing me the opportunity to assist you,

 

ANDREA

 

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