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Updated over 8 years ago,
Owner-Occupied Multi-Unit LLC, Trust, or neither?
Hi there! I'm a first-time homebuyer and I'm under contract for a multi-unit and a coach house (I'm in Chicago). I'm wondering if it makes sense for me to form an LLC or living trust? My thoughts are that it will be obvious who the building-owner is as my tenants will know I live there, and also I'd feel weird about not disclosing that I was the owner. In showing that I'm the owner I'm thinking this will negate the benefit of the "veil" and therefore render the whole LLC/living trust venture moot? I'm paying cash for the buildings so financing isn't an issue but once I fix it up (it's a foreclosure) I will likely want to take a line of credit against it.
Sorry if I'm over-sharing, just want to get all the information out there for you to ponder. In summation: I am buying a multi-unit foreclosure, wondering if I should got the LLC or living trust route as I will be living in the building and thusly the veil will be pulled back as to who is the owner. I feel like my main exposure is threat of lawsuit from injuries on property, not from things which may occur in my life outside of the property (i.e. I don't see myself injuring someone in a car accident being that I don't even own a car) so is the headache and cost of an LLC or living trust worth it in and owner-occupied multi-unit scenario?
And if it is worth the headache, which is better, an LLC or living trust?
Thanks!!