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
DiggRenting space for a seasonal business
Vikas Sawant, Highland Park, N.J.
How should a seasonal business rent retail space for only a few months? 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.
Selling out and shutting down
Should a buyer pay more for a building if selling it would mark the end of the owner’s business?
Michael, Salem, Ore.
Dear FSB: My parents have a small business and own the building in which it operates. The person next door would like to expand by buying my parents’ building, and keeps asking them for a price at which they would sell. My Dad would like to retire if they sold it, and would lose the income from the business. Two questions: Should the person pay a premium because he needs the building to expand? (Supply and demand, right?) And second, should the value of the business itself be added to the asking price, since he would be putting my Dad out of business?
Read more…
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.
Beware of hidden transfer taxes
Mari asked FSB about moving her real estate properties to her business. Have you transferred real estate to an LLC or other business? What would you recommend for Mari?
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?
Should I buy a house or a business first?
Will purchasing a home affect your chances of getting a loan for a business startup? Give our reader, Paolo, advice on what to do.
Caught by the housing crunch
The housing slump is taking its toll on some FSB readers’ businesses. Have you launched a successful side business?
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