Should I Transfer My Rental Investment Into an LLC?

If you are a property investor or thinking of becoming one, you may or may not be familiar with the benefits of forming an LLC. Purchasing property under your own name can expose you personally if the property is ever subject to liens, judgements, or lawsuits. Forming an LLC is a wise  way to protect your  assets and avoid potential personal lawsuit liability.

In addition to protecting your personal liability, there may also be  tax benefits to running your property investment through an LLC. An LLC is considered by Maryland law as a “pass-through” tax entity. While corporations are subject to double taxation, an LLC enables your rental earnings to pass through to your personal income so that you can avoid paying taxes twice.

If you own multiple properties, you might also consider opening a distinct LLC for each property which can protect each property from third-party liability claims. Another benefit to transferring ownership to an LLC is that you can  pass on the property to an heir without having to record a new deed.

If you are considering opening an LLC, or transferring a property title, you should contact an experienced attorney to guide you through the process.

For a free, confidential conversation to discuss your options in forming an LLC or transferring property, contact Maryland lawyer Stephen J. Reichert at 410-299-4959 or sreichert@reichertlegal.com.

Mr. Reichert personally serves clients throughout the entire state of Maryland, and he looks forward to assisting you.

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