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Gateville Law Firm

Yorkville Real Estate LLC Attorney

Lawyer in Kendall County Helping Real Estate Investors Set Up Limited Liability Companies

Investing in real estate property can be incredibly rewarding and profitable compared to many other types of investments. As with any investment, however, real estate investing also has its share of risks and potential liabilities. With this in mind, it is important for real estate investors and landlords to take the appropriate steps to protect themselves and their investments. At Gateville Law Firm, we understand that one of the strongest types of protection for investors is forming a real estate limited liability company (LLC).

If you are a landlord or a real estate investor, our team is ready to help you explore your options for protecting yourself and your investments, including a real estate LLC. We will help with all of the necessary requirements and filings, and we will ensure that you fully understand all of the associated rights and responsibilities.

What is a Real Estate LLC?

A limited liability company for real estate is a recognized legal entity that allows a real estate investor to buy and hold real property in a manner that limits the investor's personal liability in the event of a problem. Put simply, an LLC allows the investor to buy, sell, and do business under the name of the company instead of as a private individual. When a property is owned by an LLC, any claims against that property and its ownership would be made against the LLC rather than the personal assets of the investor or landlord. This type of protection is rapidly becoming more and more popular due to the many advantages offered to landlords and investors.

Some of the benefits of a real estate LLC include, but are limited to:

  • Limiting personal liability: As the name suggests, an LLC is intended to limit the potential liability of the company owner or owners—known as "members"—in the event that a lawsuit is filed against a property held by the LLC. Without an LLC, an investor would likely be named personally in any related lawsuit, leaving his or her personal assets vulnerable. With an LLC, an individual investor's liability concerns are greatly reduced and their family's personal asset protection is increased.
  • Favorable loan terms: Many mortgage companies generally offer better interests and loan terms for registered companies compared to those offered to private investors and landlords. Even single-member LLCs tend to get better offers for loans, so forming an LLC might be a good option for you.
  • Tax advantages: A real estate LLC allows you to keep the LLC's holdings separate from those you own personally, and there are tax benefits to doing so. The "pass-through" tax laws that cover LLCs prevent you from being double taxed on the property held by the LLC by "passing" the income generated by the property through to its individual members. This income is not subject to corporate tax, and it is instead reported on your individual tax return.
  • Transfers of ownership: It is relatively easy to sell an LLC or otherwise transfer an LLC's ownership without affecting the properties owned by the LLC. The LLC can change its members seamlessly as far as the property is concerned. This is especially helpful for succession and estate planning purposes.

Work With a Yorkville Real Estate LLC Attorney

If you are a landlord or real estate investor and you do not have an LLC, the team at Gateville Law Firm can help you understand your available options. Contact our office by calling 630-780-1034 today. Let us provide the skilled guidance you need to keep your investments and personal assets safe.

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