Name on title = more risk?

[William Howley]

Hi, I created a business and bought my first rental under the business name. I have 100% equity in the property and wanted to cash out refi the property in order to get cash our to buy another. No bank will do this because the property is in my business name so a bank had suggested putting my name on the title. 

If this is true, and the only solution, than what was the purpose of me getting a business in the first place? 

[Matthew Kreitzer]

I may be a little biased since I am an attorney, but as I am lacking kids to put through college as Mr. Gillette states, I think I am a great person to comment on this issue:

From a risk mitigation standpoint, which is the reason we lawyers exist, having properties in your own name can result in huge law suits for inordinate amounts of money. Failure to adequately protect yourself through an LLC would mean that the judgment creditor (person who brought suit) can sell your house, take your cars, and garnish your wages (maybe even your social security if you don't have a job).

But whether you should have an LLC depends on your risk aversion. Hire an attorney for a pittance now and save a multi-million lawsuit down the line? Your call. Call a local attorney.