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Updated almost 7 years ago,
Self Manage- no liability protection under LLC?
From what I've read on prior posts it seems many have the opinion of by self-managing your rental properties, you will not gain any liability protection by owning the asset and performing the property management under an LLC. For example say in the case of "we" the self-managers forgot to de-ice and the tenant slips and falls, we are now liable because we self-manage therefore nullifying the corporate veil.
I'll be partnering with a local friend/ contractor in Maryland, and we plan on doing all the rehab plus self managing at least for the first few properties. We want the LLC for protection for our personal assets (primary residence, investments, cash)
He is a licensed/ bonded/ insured contractor. I'm thinking we could set up a series LLC and have one manage the properties while the other LLC's hold the real estate.
We are meeting with a Real-Estate Attorney this Friday and I'd like to be prepared as possible.
I'd like to hear if anyone else has opinions on this. Thank you.