Should You Create a Separate Legal Entity for Your Rentals?

Forming a limited liability company (LLC) has several benefits to medium and large landlords, but limited value for small landlords.

An LLC is a legal entity, and as such it comes with administrative complexities. On the other hand, an LLC also has the advantage of limiting your personal liability when things go sour. Therefore, the answer depends on your situation.

Tellus TIP:

You should only set up an LLC if you can benefit from doing so. Therefore, you should make sure that your LLC is well managed, so that you can actually be shielded from unlimited personal liability.