All Forum Posts by: Olga Banys

It’s fine to run the business via the LLC (separate leases, accounts, etc.) even if the property stays in your name for now. You won’t get the full asset protection of the LLC until the property is transferred, but it'll still help with organization and keeping business expenses separate.

As for insurance, once the property is in the LLC, you'll likely face higher premiums, and some umbrella policies may not cover properties in an LLC. It’s worth shopping around for insurance that accommodates LLCs.

If you plan to buy more properties, transferring the property to the LLC might make sense long-term, even with the potential increase in insurance costs. It'll make things easier to manage as your portfolio grows.

Hope this helps!

Thank you Tenzapa. Since the original post I have reached out to an attorney. He pretty much said the same thing. He did say that I can't put LLC name on leases if the property is under my personal name. I think when I buy my next property, I'll consider just consolidate everything under LLC, but for now will leave stuff as is to avoid extra hassle and expenses since I only own one property for now

1 Vote

Joliet, Illinois

Quote from @George Skidis:

The Garn Saint Germain Act (1984?) allows you to place real estate in a land trust for estate planning purposes and the bank will work with you. This also gives you privacy and avoids probate. Then your LLC leases the property from the trust with the right to sublet the property. You should actually set up a lease and print it. The LLC can then manage the property. If the LLC gets sued, it owns nothing but the contracts and a check book.

If the LLC is a single member, it is filed on your personal tax return. No asset protection there. A multimember LLC must be a separate income tax return. You can choose Partnership, S Corp or C-Corp.

Be careful when applying for a tax ID number for your LLC. If you indicate which entity you choose, then a tax return must be filed for that tax year. So apply for a C-Corp in Dec a return is due 4 months later.

My article in the forums indicates ho the State of Illinois just gutted the LLC asset protections.

Good Luck and Good Investing.

Thank you George. I am still very much a beginner and have much more to learn. I haven't even heard of a land trust before

1 Vote

Joliet, Illinois

Quote from @Greg Scott:

I was in a similar situation. I had moved some properties into the LLC but then had to move them back into my name to refinance and left them there, getting good insurance and umbrella.

I shifted to using my LLC as a management company. I signed a little agreement that my LLC would manage the properties and ran all revenue and expenses through the LLC. When the LLC had too much cash, I just gave myself a distribution.

Thank you for sharing your experience, this is exactly what I want to do

0 Votes

Joliet, Illinois

Hi everyone, I would really appreciate if someone can clarify the following for me.

I own a triplex in Illinois. A few months ago I created an LLC with the intention of transferring the property into it. The lender seems to be ok with that, but my insurance agent told me that the insurance will have to be changed once it's in the LLC , and it will likely change the rate. And I cannot use my current insurance company for umbrella because they don't cover properties in LLC. My question though isn't about LLC vs not.

My question Is it ok if I run the business via the LLC, like having it on the leases, separate bank account, etc? But the property will remain under my name for now? I fully understand the "asset protection", "piercing corporate veil", and "commingling funds" part and that I won't have the protections offered by the LLC. I will get an umbrella insurance. I already have a signed and notarized quitclaim deed, but now I am having 2nd thoughts if it's worth the hassle and potential increase in insurance costs to transfer the property into the LLC. I am planning to get more properties overtime. I am going to keep the LLC regardless because it helps me to stay more organized in terms of bookkeeping, having separate accounts for business expenses etc

I am sorry if my explanation is confusing, its all clear as mud

Thank you to all who take time to respond

1 Vote

Joliet, Illinois

I am looking for a reliable property manager or company for my triplex in Kankakee, IL. I’ve searched online and there is very minimum info and options. I would appreciate suggestions on where else to look as well. Thank you everyone who responds

0 Votes

Joliet, Illinois

All Forum Posts by: Olga Banys

Olga Banys has started 2 posts and replied 5 times.

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Olga Banys has started 2 posts and replied 5 times.

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