SHOULD YOUR STR BE IN AN LLC?
A limited liability company (LLC) can be beneficial for short- and long-term rental property owners, as it can:
- Protect your assets: If you’re sued, only the LLC’s assets are at risk, not your personal ones. This can protect you from lawsuits or debts that your business may incur, such as if someone is injured on your property
- Separate your properties: If you own multiple properties, you can set up separate LLCs for each one to help protect them.
- Separate your expenses: You can easily separate your personal expenses from your business expenses.
- Provide tax benefits: LLCs can offer pass-through taxation, which means the business doesn’t need to file a separate tax return. They can also potentially reduce your taxes if you pay self-employment tax by filing as an S corporation.
How To Form Your LLC
- Call your attorney or form one for free at legalzoom.com
- Transfer title into your LLC via CA RE Documents
