Yes, we usually tell our clients to check with your accountant, who will work with us as to how they think the property ought to be titled. Very often it’s suggested that the property be placed into an LLC that owns the real estate and then leases the real estate to the business. As a separate corporation or a separate LLC, it runs the business.
From time to time, we will have clients who are core investors who may be investing in single-family homes. From a legal standpoint, we would like the client to keep it out of their personal name — we really don’t want them personally liable for issues that might occur related to the real estate. If the real estate investor ends up getting sued as an individual, it could expose them to liability in excess of their investment, including their home and personal assets.
You want to keep your personal assets and your personal liability separate and safe, which is why it’s common to have a limited liability company, or some other limited liability entity, own the property.
Learn more about real estate in Columbus, Ohio.