LLCs and Rental Properties

Setting up an LLC (or other entity) provides you with the liability protection afforded by the law. Great!

But you bought the house in your own name, so you are still liable!!!

All you have to do is transfer the title from your own name into that of your LLC. Sounds simple doesn't it. In practice, it's not that complicated either. Take your deed or title that you got from the lawyer or title company at closing, and take your corporate minutes book to the county recorder's office and ask the clerk to help you transfer the title from your name(s) into the name of your LLC (or whatever). There is usually a fee involved (typically less than $30.00) for the paperwork.

And yes, before you ask, you need to go to the county where your property is located. If your LLC was established before you purchased the property, you should ask the lawyer or title company if they will do an "accomodation" at closing and do that transfer for you. If not, some people do offer a service so that you don't have to travel from your home to some far away place just to transfer the property (unless of course it happens to be somewhere warm in the winter).

Hope that helps. Now it's time to see how many ornaments I can knock off of the tree - yipee!

Smokey