Question re: TiC v. LLC for title - Posted by PFischer

Posted by Bill Bronchick, Esq. on July 20, 2010 at 09:30:38:

LLC will protect you from liability and is worth the $800/year. Consider it extra liability insurance.

Question re: TiC v. LLC for title - Posted by PFischer

Posted by PFischer on July 12, 2010 at 19:00:55:

First, I’ve just now found this board and it seems fantastic. I’ve
searched the
archives for the answer to the following, but found nothing specifically
on
point, but my apologies if this has already been previously asked and
answered.

If I am purchasing a single family home with a partner (another
individual), is
there any reason that it would be better for us to form an LLC (or LP)
and have
that entity hold title to the property rather than take title as tenants in
common with each of us having our own individual LLC (such that the
tenants
in common, rather than being me and him individually would be
“MyLLC” and
“HisLLC”.

The reason I ask is because (i) we don’t want to expend the funds to
form the
LLC (I’m in CA and there are min $800 of franchise taxes), (ii) we don’t
want
the paperwork hassle of reporting on a separate entity, opening
separate
accounts for the LLC, etc., and (iii) each of us wishes to, probably
through our
own individual LLCs do other investing and not then again form another
LLC
for that separate investment.

I understand that the TiC situation alone offers no asset protection, but
if I
have my own LLC (and so does he) and we take title as TiC (and of
course
have a cotenancy agreement setting forth our respective rights and
obligations vis-a-vis each other), is this adequate or is it STILL better
to form
an LLC for this one single family home investment.

Any thoughts would be greatly appreciated.

Peter