Forming LLC & Deed question

[Quan Dao]

Hello everyone, I am starting my short term rental journey. Currently, I only own one property with a mortage. Should I open an LLC or should I run it as individual? Furtheremore, If I open an LLC, am I required to change the deed to the LLC? Currently I have a mortage and it seems like a lot of work, if I have to change the deed. Please educate me everyone. Thank you so much! ❤️

[Frank Chin]

@Quan Dao

I owned a number of MF rentals some years ago. I also have an S Corp., C Corp, and an LLC for an active business I bought.

The LLC was not used as a shield. It's used to form a barrier from one business to another. In the active business, I have employees. I'm required to provide workman's comp, unemployment insurance among other things. The state does on-site inspections of business. If I don't separate this active business from the rentals, they can go into who I hire for my rental business, what are the locations etc. Before Obamacare, it cost me $2,000/month for private health insurance. But if I bouget it under the LLC, by law I have to buy it also for my employees. Thus, I formed the C Corp management company to pay for my health insurance as I cannot charge it off as a rental expense schedule E. The management company paid my insurance and charged me a management fee which can go onto the schedule E as a rental expense.

Get the picture?