LLC for Rental Property Protection

[Bobby Paquette]

Anyone have any tips for establishing an LLC for a rental property, or a Point of contact in Indiana? The property is in northern Indiana, my first deal, and I close next month. I would love to establish an LLC and then after closing transfer it to that.

[Zach Westerfield]

as far as setting it up, a lot of people do it themselves to save money. i would recommend using an attorney for at least the first couple, or anything after that that is "different". LLCs are not an iron clad wall that no lawyer can get through. they are one layer in a liability protection strategy. having an attorney set it up, and provide guidance on how to property run it can help strengthen that layer. mine only charges $250 to set up an LLC. its important to show the LLC is run as a business as well. Maintain separate books, and do not mix accounting and expenses with personal dealings. an improperly established LLC that is not conducting business appropriately will not last one minute in court with a good attorney.