What an LLC does - and doesn’t - protect
LLCs shield their members from legal claims, but the company itself still carries liability risks.
Angela J. Thomas, ATM Investments, Baton Rouge, Louisiana
I am just starting out in the investment world and am still a bit green in understanding certain things. I purchased two investment properties in 2004 and am renting them out. This year, I created an investment LLC for them. My questions is, although I have the LLC with its “limited liability,” do I still have to put insurance on the company?
Comment
DiggDrawing sellers to a home-raffle site
A reader looks to gain exposure for her online real estate business.
Yvette Brown, New Start Concepts Management, Bronx, N.Y.
I started a small business that raffles houses online. How can I get exposure for the Web site? Read more…
How do I assure customers I’m not going broke?
Ask FSB’s tips for reassuring customers in a jittery home-building market.
Gloria Jarvis, St. Louis
My husband and I own a small real-estate development and home-building business. We focus on high-end, green construction in a new subdivision in a high-demand area, and we have little competition. Our customers are not affected by the current credit crunch. Our build time is 16-18 months, which reassures our buyers that they have some time for the market to recover to sell their existing home. Yet our customers are scared to buy because they hear that every builder is going bankrupt! In our case, this just isn’t true. We recently signed with a joint-venture concern that ensures our surviving the housing crisis. I am sure there are many small and medium-sized builders/remodelers that are experiencing market resistance now, but we are not in that category. How can I convince our prospective buyers that we are not going broke - short of showing my balance sheet? Suggestions? Read more…
Living in a property your business owns
You can do it - but the financial costs may be steep.
Martin Woomer, Silverdale, Wash.
I am thinking of buying a rental property that I may live in for a while. How do I transfer the title from my person to my business (I’m a sole proprietor)? Or is it better for my business to buy it, then have me rent it? Any suggestions? Thanks.
Bank approval to bring properties under an LLC
Andreas wants to move three properties to an LLC. Have you recently transferred properties into your business? What procedure did you follow? Fill us in.
Where side businesses blur ethical lines
Ginny asked if she needs a business license to conduct seminars outside her full-time job. Does Ginny’s situation cross ethical lines?
Should I put my Florida rental properties into an S-Corp or LLC?
Robin from Miami, Florida, asked FSB about claiming a loss on rental properties. Have you been able to claim losses because of the real estate market?
Tax deductions for your business SUV
Mary asked FSB about depreciating her business SUV. How do you claim your business SUV at tax time?
Caught by the housing crunch
The housing slump is taking its toll on some FSB readers’ businesses. Have you launched a successful side business?
Luring prospects to your website
Richard owns a military housing real estate website and needs listings on the site. Do you have any advice on how he can attract sellers to his site?
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