LLC in Maryland?

[Mike Fintel]

Hi,

I'm new to BP and to REI in general, even though I've had my home rented out for the last 4 years while living abroad. I'm looking to purchase a property or two in the Baltimore area, and was wondering if anyone had experience with LLC's.

Specifically, I just want to know if it makes sense.  I've read what I can find about them and their $300 yearly filing fee, as well as posts from other states, but if anyone has any personal advice about whether they make good sense in Maryland (or general advice, really), I'd appreciate it.

Thanks,

Mike

[Ned Carey]

Yes lots of people use LLCs in MD to hold properties. Yet lots of people don't use them. 

This is a complex question that weighs risks and costs. Without knowing more about your specific situation it is hard to say. Only an attorney can give you legal advice for your specific situation.

In general an LLC can help limit your liability. But this limit is not absolute and probably not as strong as you might think. Also an LLC will increase your costs. There are also tax consequences to owning properties in entities, and how you chose to have that entity taxed, in the case of an LLC.

For what it is worth most experienced landlords hold properties in LLCs. 

If you want to learn more I recommend the excellent books and website of Nolo Press.