Paying rent to an LLC company Vs Landlord

[Kumar Gaurav]

Hello,

A friend of mine owns rental real estate in his name (not LLC) but collects rent through an LLC, are there any tax advantages or any other advantages with this setup? I as a landlord directly collect rent from my tenants that goes into my bank account. I am curious about if there are any advantages about getting paid as a Landlord directly Vs LLC.

Thanks

[Greg Scott]

Realistically, there is no tax benefit. Assuming the LLC is a flow-through entity, there would be no difference at all.

As an landlord you can create a property management agreement with your own LLC to do this. The main benefit is that the residents would see the LLC as the owner and might assume the owner is just a manager of the property management company.