All Forum Posts by: Jennifer Taylor

Thank you, @Stuart Udis  I would say we are very risk averse and so the the answer to the operational questions posed is a yes. 

In the absence of another LLC this would assume running activities through our existing investment entity. If just going this path is more practical it would simplify things significantly, but everything I understand says introducing these new activities and the respective liability could expose our other property to risk if a nuclear claim occurred related to either property if they were part of the same LLC.

Hi everyone, 

I'm looking for any legal references that can help me answer the following questions and provide guidance as to whether this approach is sound or needs adjustments: 

-What is the entity structure for managing assets and activities of a short/mid-term rental business? We currently have a LLC that owns our existing rental property and we run the short term rental activities through this LLC with its own separate bank account.

-We are closing on a primary residence in a couple of weeks that has a cottage on it that we will begin short/mid term renting upon close. My thought is that we open a new LLC to run all property management activities (for existing rental property and cottage) along with new bank account, etc. for all activities. The existing rental property will continue to be owned by the existing LLC. The cottage property will be held by us personally as it will be located on our primary residence property.

-I will then put in place a lease agreement between ourselves personally to the new property management LLC to lease the cottage and between the ownership entity of the other rental property to the prop management company. We will also have a short/mid term lease agreement put together for renting out these rental properties with an intention to further limit liability.

My overall question is whether this structure is sound or if we should take a different approach to limit liability. Additionally, if we open a LLC to manage our own properties, do I need to hold a broker's license in KY to do this legally? I am a licensed agent in State of CA but have not taken steps to also get it here.

If anyone has experience in this or has a referral to a legal firm who can help with this I'd appreciate it.

Thanks y'all!

Jenny

Hi, BP friends. Husband and I are purchasing a property as our private residence that also has a small cottage on it we plan to STR.

We plan to personally lease the unit to a newly created LLC and run direct expenses through a separate bank account in the LLC name.

Are there any other considerations to ensure appropriate liability protection in this arrangement? 

Thank you! 
Jenny

Looking at a property for a primary residence that has an income generating cottage (STR) on it. We currently have a STR in a separate LLC. What are some potential structures to allocate direct expenses to the rental on primary residence property and keep the activities separate as not to pierce the veil?

@James Wilcox, that would be great, thank you!  I'm struggling to get anyone on the line.  Was just in Bowling Green over the weekend.  One of our horses was in at Kentucky Downs.  Have two more in this weekend! :)

@Bryan Gay, are y'all still around in KY?  I'm looking for a CPA with real estate experience.  This thread is very old and it looks like your website is down, so was hoping to connect here.  Thanks!