Rental business

[Brian Buckley]

If I'm purchasing a rental property under my name should I still set up my own business in terms of collecting the rent and handling any problems? I want to go into this being as professional as possible while still realizing the largest profit. Thanks

[Matt R.]

Hi Brian,
probably the easiest way to do that would be with a DBA (Doing Business As).
So you, Brian, can operate as a business called "Best Landlord in the World" where your business bank account, business cards, etc, etc can now use that name and thus be more professional looking. Your individual name doesn't have to be visible to your renters since everything goes through your business name.
(As far as they know, you're just the handyman, rent collector, who's employed by the company "Best Landlord in the World".)
It also provides additional evidence to the IRS that you are indeed running a separate business.

Profit and loss would still go through your individual tax forms on Schedule E, so no changes there.

Something else to consider - insurance coverage in case a renter (or their guests) has a slip or fall. If they sue you, are you covered for that ?