New Landlord: Do I need a business name, LLC?

[Fred Ruckus]

I'm a newbie. Became an accidental landlord and trying to get everything figured out to avoid any mistakes. I have a lot of questions and look forward to others' opinions.

The house is ready, and I'm in the process of drawing up a lease, but aside from setting up a business account at the bank, do I need to have an official business name? Can I just make something up or do I have to register it or have an LLC? I only have the one rental house.

[Ned Carey]

@Fred Ruckus

do I need to have an official business name? Can I just make something up or do I have to register it or have an LLC?

No you do not need a business name or LLC. Can you benefit from them? Perhaps. The only thing a business name would do is perhaps hide the fact you are the landlord. Not very effective and probably a waste of time. To use a business name all you have to do is register a DBA (doing business as)

Many people own businesses as a Sole Proprietor, legally you and your business are the same.

You can create an LLC or other entity to hold the property. This would mean transferring the property to the new entity. The new entity is legally separate from you. If set up properly it may protect you from some liability.

Many people think you need to have a "business" to deduct business expenses. This is not true. A sole proprietor can deduct legitimate business expenses even if they run a company in their own name.

Whether to create a separate entity is a complex question. There are many threads here on the subject. I also recommend the NOLO Press website and their self help legal book to educate yourself on LLCs, corporations etc. Please note I am not recommending you do your own legal work but you should educate yourself so you can better work with legal and accounting professionals.

Good luck - Ned

PS Welcome to Bigger Pockets