Whether you're flipping properties or renting properties for long-term income, real estate investment is a popular and often lucrative means of diversifying your investment portfolio. A vital key to successful real estate investment often lies in smart business decisions, including how you structure and protect your real estate investments. At Skufca Law, we offer a Real Estate Investment LLC Package to help you maximize your potential while minimizing risks.
Real Estate Investment LLC Package
Our Real Estate Investment LLC Package includes three steps:
- Creating the LLC. The first step in securing your real estate investments is to establish a Limited Liability Company (LLC). This legal entity offers a crucial layer of protection between your personal assets and your real estate holdings shielding both from the liabilities incurred by the other.
- Obtaining the EIN: An Employer Identification Number (EIN) is how the IRS identifies your business. It's a necessary tool to open bank accounts, build credit, file taxes, and conduct other financial transactions on behalf of your investment properties.
- Deeding the Property to the LLC: Transferring ownership of your investment property to the LLC is a critical step to complete the asset protection process. We facilitate this process through a quitclaim deed transferring the property from your personal name to the LLC’s name.
While not a part of our flat fee package, we can also prepare important ancillary agreements for your investment like a operating agreement if you are investing with a partner.
The Importance of Proper Structuring
Keeping your investment properties in your personal name can expose you to significant risks. In the world of real estate, unexpected challenges can arise, such as tenant disputes, property damage, or other legal liabilities or lawsuits. By structuring your investments within an LLC, you create a distinct legal entity that limits your personal liability. This means that in the event of a lawsuit or financial setback related to your real estate holdings, your personal assets, such as your home, savings, or investments, are shielded from potential creditors or legal claims.
Moreover, an LLC offers flexibility in terms of management and taxation, allowing you to optimize your investments from a financial standpoint.
At Skufca Law, we understand that every real estate investor has unique goals and circumstances. Our Real Estate Investment LLC services are designed to provide you with a solid legal foundation for your investments, ensuring that you can focus on growing your portfolio while minimizing personal risk. Contact us today to discuss how our experienced team can assist you in structuring your investments through an LLC.