How To Form Llc To Buy Real Estate

An llc or limited liability company is a way of putting a business together to enjoy certain benefits of both a sole proprietorship or partnership and a corporation.

How to form llc to buy real estate. Over the last decade limited liability companies llcs have become one of the most preferred forms of business entities to hold title to investment real estate properties. An llc for real estate is an established legal entity that allows investors to purchase and own real estate in such a way that protects them from personal liability. There are advantages to buying real estate under an llc. Choose a name for the real estate llc and register this with your state ensuring that the name is available before starting any other paperwork. This means that the investor buys and sells real estate as well as conducts other business in the name of the llc rather than as an individual.

To create an llc you file articles of organization in some states called a certificate of organization or certificate of formation with the llc division of your state government. The insulation from personal risk exposure for real estate investors provided by llcs coupled with the relative ease of administration and potential tax benefits makes ownership of investment property through an llc a. You can usually go online or in person to your local secretary of state s office to file the paperwork.