General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago,
First time landlord with LLC question
So I have a very specific case and after extended research I am still not sure if forming an LLC for my rental property is right for me. Some background: I purchased my first home using VA in El Paso Texas this last December. The property has a second, detached in-law unit with its own yard. My intent with buying the property is to hold it, rent out the second unit until I am stationed somewhere new (likely summer of 2020), and then rent the main house. My question is, should I form an LLC and open a business account for collecting rent and keeping rental expenses/income separate? I understand that I will not be able to transfer ownership to the LLC for some time due to it being a VA loan, so the LLC will not provide much in the way of liability protection. My confusion, is to whether the rent payments to an LLC would be worth the hassle for the tax benefits. My goal is to continue to buy investment properties in the future for rental income. I appreciate the input, I'm very new to real estate investment and you all seem like experts.