If you are a real estate investor in the state of Florida, it is likely that you will be looking for ways to protect your personal liability while growing your profitable endeavor. Many people decide to benefit from the protections associated with a limited liability company (LLC).
Creating an LLC essentially means that you will be able to separate yourself from your real estate investments. This means that there will be less of a risk to your personal assets such as your family home and personal savings. Before creating an LLC for your real estate business, however, you should make sure to carefully consider both the pros and cons.
An LLC does not always guarantee personal liability protection
It is important to remember that you can still be held personally liable in certain situations, even with an LLC. For example, if you commingle your personal and business funds, the separation of the two entities becomes unclear under the law. Additionally, by engaging in fraudulent activity, legal action can extend to your personal assets.
LLC creation can attract investors
There are many benefits to the creation of an LLC beyond personal protection. The corporate structure will also offer protection for investors, and this means that the prospect of investing in your projects will become more appealing.
There is a potential for a low tax rate
It is possible to benefit from lower taxes through an LLC since investors report company profits from personal tax returns.
If you are considering creating an LLC for real estate investment purposes, an experienced attorney can answer any questions you may have.