LLC Minnesota to get one or now.(mortgage still in personal name)

[Patrick C.]

curious what people do when they still have a loan and only a SFH. llc or no llc

About to close on my first rental property single family home, purchased in my name. I plan to get umbrella insurance policy to protect against anything crazy. also considering getting an LLC, (Minnesota) and have rent paid to the LLC, (since i'd be the only member it would pass to me) and then have the llc pass money to my bank account to pay for mortgage.

Going to talk to my tax specialist next week (who also has a dozen buildings he rents) 

wish you would have gotten a LLC or not needed. ?

[John Woodrich]

First off, if you are getting a personal loan for the property you likely can't put the property into an LLC . Most loans have a due on sale clause that would essentially prohibit the transfer to your LLC.

Using the LLC as a management company can potentially protect you from rental liability but as mentioned it woun't stop you from losing it due to another personal event. Umbrella policies are a good idea, if you have assets to protect.

A single member LLC (in MN) does not cost a lot to operate, in most instances it will not cost anything other than your organizational costs ($155 state fee + labor to setup). MN doesn't have an annual fee like some states have.