Are There Any Rental Property LLC Disadvantages?

Using an LLC for rental property in real estate may be advantageous. Folks like BiggerPockets and Pace Morby would agree! But when utilizing an LLC, there are many LLC disadvantages that you must be aware of.

Some of them include LLC fees, the LLC cost, drafting operating agreements, finding a registered agent, and getting an EIN number.

There also could be issues with LLC lending, especially if you want to do a home refi. Not to mention the due-on-sale clause. You want to avoid this due-on-sale at all costs!

There are also some taxes, including the excise tax and the real estate transfer tax.

LLC insurance and LLC liability are also important considerations.

What is a transfer tax in real estate? And what is real estate transfer tax? This video answers these questions!

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DISCLAIMER: The contents of this video are NOT LEGAL ADVICE and do not apply to your specific circumstances. This information is provided for general informational and educational purposes only. Viewing this video DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP. We highly encourage you to seek professional legal advice before acting or relying on any information contained in this video.

Видео Are There Any Rental Property LLC Disadvantages? канала Corporate Direct