The most common reason to form an LLC to hold real
Post# of 153818
(Total Views: 696)
Posted On: 08/12/2021 11:32:15 AM
Re: KenChowder #99780
The most common reason to form an LLC to hold real estate or other assets is to protect yourself from potential liabilities. This would especially be the case if you rent the property. If someone sued you over something related to their stay at the property, only the assets inside the LLC would be at risk.
Also, many people with substantial assets form many multiple LLCs to hold different assets. If you hold all of your assets personally or in 1 LLC, they are all at risk if you were ever sued. Wealthy people are always at risk for being sued for frivolous reasons. If you spread all your assets in different LLCs, you are a less attractive target for lawyers.
It has nothing to do with taxes, any gains in the LLC will flow to the owners of the LLC who will pay on their personal tax return.
Also, many people with substantial assets form many multiple LLCs to hold different assets. If you hold all of your assets personally or in 1 LLC, they are all at risk if you were ever sued. Wealthy people are always at risk for being sued for frivolous reasons. If you spread all your assets in different LLCs, you are a less attractive target for lawyers.
It has nothing to do with taxes, any gains in the LLC will flow to the owners of the LLC who will pay on their personal tax return.
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