What Are the Benefits of Forming a Limited Liability Company?
The primary motivation for creating an LLC is to manage risks related to being a landlord. An LLC limits your liability from a personal injury lawsuit by a tenant who is injured on your rental property. Without the LLC, you would be sued personally and all your personal assets are at risk. If you own commercial properties (a property with five or more units), an LLC may be a good option for you. The thinking is that the more tenants you have, the more likely something will go wrong.