Straight Up Chicago Investor Podcast Episode 201: Should You Move Your Rental Property to an LLC?

Mark Ainley - Monday, May 29, 2023

When you own a rental property, you are taking on a certain amount of risk. If something goes wrong, such as a tenant getting injured on your property, you could be held liable. This could mean losing your property, your savings, and even your home.

One way to protect yourself from this risk is to move your rental property to an LLC. An LLC is a type of business entity that provides limited liability to its owners. This means that if something goes wrong, the creditors of the LLC can only go after the assets of the LLC, not the personal assets of the owners.

There are a few things to keep in mind if you are considering moving your rental property to an LLC. First, you will need to file the appropriate paperwork with the state. Second, you will need to make sure that all of your contracts, such as your leases and insurance policies, are in the name of the LLC. Finally, you will need to make sure that you are following all of the applicable laws and regulations.

If you are thinking about moving your rental property to an LLC, it is important to talk to an attorney. An attorney can help you understand the risks and benefits of doing so and can help you file the necessary paperwork.

Here are some additional tips for moving your rental property to an LLC:

Make sure you have a clear understanding of the risks and benefits of doing so.
Talk to an attorney to get help with the paperwork and to make sure you are following all of the applicable laws and regulations.
Make sure all of your contracts, such as your leases and insurance policies, are in the name of the LLC.
Make sure you are properly managing your LLC. This includes keeping good records and meeting all of the required reporting requirements.

By following these tips, you can help protect yourself from the risks of owning a rental property and ensure that your investment is safe.

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