Posted by chet on January 02, 2005 at 13:29:37:
I think that good insurance is always required, but various asset protection structure can add an additional layer of protection.
I don’t know what is the tax rate of a trust v. LLC v. S- or C-corp. A consult w/ a CPA and or atty would be prudent.
REI Newbie Trust v. LLC Question - Posted by rbt
Posted by rbt on January 01, 2005 at 13:52:49:
Hi,
I’m new to this, so bear with me.
My wife and I own a condo in VA. We bought it as my primary residence and have been living in it for a few years. When we buy another place, we plan to rent the condo out.
We hope to continue this practice (buy a place as primary res, live there for a few years, then move and rent) until we retire. By then, if things go well, we’ll have 3 - 5 rental properties as a source of income.
I’ve read about LLCs and Trusts. Which should I use? My understanding of trusts is that thay provide privacy. I like that… do they do anything else? My understanding of LLCs is that they limit liability to the assets of what they hold should I be sued for something. I like that too, but isn’t having good insurance and a properly maintained rental property (no negligence) enough protection from lawsuits?
As I said, I’m really new to this so any advice would be great. Thanks to all… this is a great site!!!
rbt