Property LLC or Tenancy in Common or Both?

[Adwaita Ray]

I'm going for my first investment but I wanna do it with a few of my friends. I intend to buy an SFR property, and then create an LLC with shared ownership or set up having Tenancy in Common agreements after its bought .Does making an LLC help or having Tenancy in Common agreements make more sense ? Or can I have an Property LLC and issue Tenancy in Common agreements where each shareholder will have equal share in property as well as the LLC? TIC would help me in allowing shareholders to leave when they want . I believe the liabilities of both are different? Can I have a property LLC with TIC agreements for each shareholder and have all the liabilities be the responsibility of the LLC and not the TIC agreement holders?

[Eamonn McElroy]

"Can I have a property LLC with TIC agreements for each shareholder and have all the liabilities be the responsibility of the LLC and not the TIC agreement holders?"

I'm not following why you would want to do this or what you're trying to accomplish.

Generally if arms-length individuals are coming together to purchase, hold and operate rental real estate, an LLC taxed as a partnership or an LP are two legal entities that make a lot of sense. The operating agreement will get everyone on the same page.

Good question for your attorney and tax CPA.