If you would like more information, or would like to be contacted by one of our LLC Affiliates, Please click the link below. More Info LLC Advantage Buying real esate as an investment personally is not a good idea. Your other personal assets would be at risk to satisfy any potential liability that arises from operation of the real estate investment. For this reason, many people use a limited liability company (LLC) to own real estate. The LLC in many states, including Arizona, provide asset protection similar to that of a corporation. In addition to liability protection, a limited liability company (LLC) provides maximum flexibility and maximum tax savings for ownership of real Estate as an investment. The LLC structure provides: Protecting your personal assets through liability protection Deducting certain expenses Reducing audit risk Why an LLC over a corporation? The LLC structure is generally more simple to maintain (i.e., there is generally no need to have annual meetings or update minutes with an LLC). The LLC structure also has greater flexibility in economic and management structure. The LLC allows for multiple memebers, with an operating agreement, you can assign memeber benefits and resposibilities for each member including percentage of ownership. This and all of the other great features of an LLC make it an ideal business structure for Real Estate investing including Real Estate Co-Ownership. Without an LLC As a property owner, your liability for business debt or legal action is unlimited. Personal assets such as your home, personal bank accounts and other valued assets may be at risk. Liability Protection What does this mean? It means that if your real estate investments experiences severe financial difficulties, creditors can take away your personal property such as your home, retirement savings, or any other asset you or your spouse own. In our increasingly litigious society, it is becoming ever more important to limit your exposure and protect yourself from liability. Forming an LLC draws a firm line between your personal and business assets, helping protect your personal assets from risks or debts associated with running your business or owning real estate. Tax benefits of an LLC include Deductible Expenses & SavingsSimilar to a corporation, normal business expenses like your salary may be deducted from the profits of your LLC before the income is allocated to your owners (also called 'members'). Your LLC is not considered a separate tax entity from its owners for tax purposes — whereas a corporation is considered separate for tax purposes. This means that business income passes through the business to your LLC members, who report their share of profits/losses on the individual tax returns. An LLC with more than one member is automatically classified as a partnership for tax purposes. LLCs can also offer an additional tax advantage over a corporation because the allocation of earnings among owners is flexible. The owners of an LLC can agree to allocate the company's profits and losses among themselves however they see fit, and not necessarily based on what percentage of the company each owner controls. Make sure to discuss liability issues with your attorney. 
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LLC Protection 
