A limited liability company (LLC) is an ownership method that any real estate investor should consider.
An LLC separates your personal assets from the business. For a real estate investor this means that if something goes wrong with the property then a lawsuit can only claim up to the assets of the company.
With an LLC you can take advantage of pass-through taxation. This means that the company does not pay any taxes. Instead, the taxes pass down to the owner. This prevents double taxation.
There are other advantages, too. They depend on the number of investors you have and the size of your investment operation. Most small real estate investors focus on the first two listed above.
On the other hand, there are pitfalls and things you must consider when using an LLC to invest in real estate. That is what this section of articles deals with.
