When you get into the business of renting one property or many, each property, it is recommendend by professionals, is to hold each in it’s own Limited Liability Company commonly referred to as LLC.
In most cases, you should establish the “LIMITED LIABILITY COMPANY” otherwise known as an LLC.
Just as it sounds, the LLC is to reduce or shield you, as the owner, from liability should there be an accident, bankruptcy etc.
There are two professional that you should consult prior to creating an LLC:
YOUR CERTIFIED PUBLIC ACCOUNTANT – it will create more work for them. There are additional returns to file. You may also have to file something with your state with respect your LLC. Normally referred to as an ANNUAL REPORT for the LLC.
YOUR LAWYER -you may want to consult your attorney prior to creating your LLC. Only to ensure that the creation or who you make part of the LLC is correct.
Read more on the LLC on RentLaw.com here.