Advantages and Disadvantages of an LLC for Rental Property
While LLCs have many benefits, they also come with some drawbacks.
A limited liability company is better for asset protection and can separate your rental debts from your liabilities.
An LLC allows you to avoid many problems when it comes to financing a rental property.
However, an LLC is better than a sole proprietorship, and it will be easier to manage money.
It is a good idea to form an LLC before renting your rental property.
Using an LLC will protect you against personal liabilities.
An LLC must maintain its corporate records, and it should not have a bank account in the same state as the property.
When you have multiple rental properties, you can establish an LLC for each.