QUESTION
Is it a good Idea to put property with 10 relatives, it' into an LLC for protection from being sued.
Asked on Apr 09th, 2015 on Trusts and Estates - California
More details to this question:
Relatives want to put single family home into an LLC for protection if we should be sued Property is a single family home that is to be rented out.
1 ANSWER
In my opinion you have to look at the facts of the case to know what's right. I figure it costs about $1,000 a year to have an LLC in California. There are some creditor protection benefits. However, depending on how much rent is coming in that $1,000 a year can really cut into your rental profits. I would rather have a good general partnership agreement and the best insurance you can get. I encourage you to explore your options with an attorney.
Answered on Apr 14th, 2015 at 6:59 AM