Can I create an LLC for a Mother-In-Law Apartment?

[Randy Babineau]

Hello All, My In-Laws are building a 1 bedroom apartment that is detached from my home on my property. It will have its own address, but is still on my land. As my town only allows 1 owner per lot of land, the apartment they are building will be in my name and will be fully gifted to me by my in-laws. I spoke with my tax accountant and he said that I can charge them fair market rent, and claim the expenses from the rental. I do have two other rental properties that are not currently in an LLC as the banks wouldn't allow that. Since the new property is being paid for in cash, I dont have that limitation from a bank. So my question is, can I set this up in an LLC? This would give my in-laws some peace of mind, since they are concerned that if something were to ever happen at my other rentals and I were to be sued, then they could take my primary residence and their new home. I do have a 1M umbrella along with the standard 500k liability on each property. Thanks for your help with this.