Holding Real Estate in an LLC

real estate agents and customers shake hands to congratulate on signing a contractA Limited Liability Company, also called an LLC, it’s a type of business entity.

An LLC is intended to shield the LLC owners, called members, from lawsuits filed against the operations or property held in the LLC. Many real estate investors use LLCs to hold investment or rental property.

Assuming the LLC is properly managed and operated, successful lawsuits filed against the LLC can collect LLC assets, but not the owner’s personal property.

However, an LLC owner is not shielded from lawsuits where she was personally responsible for the injury behind the lawsuit.  This can happen, for instance, where a property owner personally performs repairs and leaves a dangerous condition that leads to injury.

Holding multiple properties in one LLCs can prevent collection against the owner’s personal assets. However, creditors can collect against any property held in the LLC.

Some clients create multiple LLCs to hold different properties. The property held in one LLC could then be shielded from lawsuits against properties held in other LLCs.

Finally, transferring real estate to an LLC can cause complications with property tax. Great care must be taken to avoid a property tax reassessment.

Contact a Milpitas, California LLC Attorney today for help in creating or managing an LLC to hold real property.

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"I have had the pleasure of working with the Keyes Law Group these past months. To date, Mr. Keyes has been a great asset to our family; helping to plan a trust and the appropriate tax strategies for us and the next generation. What has worked very well for my wife and I is the time Mr. Keyes has devoted to not only hearing our financial planning concerns, but to also take the necessary time to explain and offer options for us to consider. We have worked with tax attorneys and financial consultants over the years. For us, a successful relationship is one of the key factors that we strive for. Working with the Keyes Law Group has been a very good fit for us as we work to get our financial affairs in order." -- RY
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"It is very important to research and choose wisely when looking for an estate planning attorney. Did you know that the California State Bar Board of Legal Specialization has a unique recognition for attorneys who go beyond the regular requirements to practice Estate Planning? Elijah Keyes has this designation; Certified Estate Planning Specialist. He is extremely well versed with this specific area of law and is a strong advocate for his clients in estate planning, including establishing living trusts, wealth planning and family transfers, dynasty trusts, conservatorships, special needs trusts, elder law medi-cal benefits and planning, trust administration and probate. Thank you Elijah, for being a trusted resource for us and for our clients!" -M.H.
"Keyes Law Group helped our family through a very difficult time with estate planning. He's honest, transparent and genuinely cares about his clients. His own personal experiences have shaped his approach in working with people - especially older folks who might be more mistrusting. He can finesse difficult conversations with ease and for that, I'm forever grateful. 100% recommend!" -Y.V.
"Elijah was very helpful with editing our family trust after my wife passed away. He answered all my question in a timely manner and if he did not know the answer he found out quickly. He would take time out of day to reassure me that he had everything under control. He took his time to explain why he worded the trust the way he did and that I understood what it meant. Will use him again when the trust needs to updated." -D.

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