Using LLC for Rental License while Deed is under personal name

[Forrest Hayashi]

Hello all,

I'm new to the forum and just started in Real Estate Investing. Recently, I've purchased a duplex in the great city of Philadelphia and wishes to rent it out. I'm in a pickle as I want to use a LLC but it seems like I don't need one due to the infancy stage of my investment growth. However, I want to use a LLC for my rental license while still enjoy the better interest rates with the properties under personal loans (vs. a commercial). Will the LLC have the same legal protection on the rental property if the rental license is under its name rather than mine?

Thank you,

[Kevin M.]

@Chris K. has talked about this in a few other threads. 

If the property is deeded in your personal name, the rental license held in an LLC will make no difference to your personal exposure to liability. If someone trips on your sidewalk any lawyer taking the case will immediately search public records and bring the deeded owner into the case. Probably your LLC 'managing' the rental as well. So you'll still personally be a named party in the case.

Creating an LLC to manage the property is probably more trouble than it's worth. You can still get anonymity with a virtual mailbox, Google Voice number, and LL-specific email address used for RE activities only. Do this along with a big fat GL insurance policy and umbrella on top of everything.

*mandatory " am not your lawyer" disclosure, this advice is worth what you paid for it..