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Updated almost 9 years ago on . Most recent reply
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Personal home in an LLC?
A friend of mine is buying his home all cash. For the purpose of asset protection (protect against frivolous law suits Ect) -- Should he put it in an LLC?
Because it's not technically ran as a business, would this make it easy to pierce? And/Or because it's in Ohio is the homestead exception the best bet and leave it in his name?
Most Popular Reply
The best asset protection would be to mortgage it to the hilt at today's historically low rates and then invest that money at a higher rate in the LLC. If there is no equity, there is nothing to sue for. There will also not be any question about the tax exemptions afforded to homeowners. And you can write off the mortgage interest as well. Win, win, win.