topic Re: Rental property- LLC or Land Trust? in Personal Finance

Rental property- LLC or Land Trust?

NoMoreE46 — Sat, 08 Jan 2022 03:44:03 GMT

So we maybe setting up a rental property (SF home in Florida.) We plan to have a management company handle everything.

Does anyone know the pros and cons for a LLC vs a Land Trust ?

Re: Rental property- LLC or Land Trust?

pizzadude — Mon, 10 Jan 2022 15:25:32 GMT

Is this only for a single property ? If so I think you could probably do everything with just an LLC. Are you planning major expenditures like rebuilding / refurbishing ?

Also if you haven't already I'd seek professional advice, like a tax attorney who can help you understand issues around taxation, etc..

Re: Rental property- LLC or Land Trust?

wasCB14 — Wed, 12 Jan 2022 23:31:19 GMT

California here. We own everything through trusts created decades ago for estate planning purposes. For newer investors, LLCs seem to be the preferred choice.

IANAL and especially not a FL lawyer. There may be some local regulatory consideration that favors one approach over another.

Re: Rental property- LLC or Land Trust?

Creditplz — Thu, 13 Jan 2022 05:44:59 GMT

We (my family) have everything under a trust, 4 properties 11 units here in LA.

I have 3 properties under a LLC myself. Best advice would be to consult a tax attorney.

Re: Rental property- LLC or Land Trust?

wasCB14 — Thu, 13 Jan 2022 06:58:36 GMT

@Creditplz wrote:
We (my family) have everything under a trust, 4 properties 11 units here in LA.

I have 3 properties under a LLC myself. Best advice would be to consult a tax attorney.

Keep in mind there may be factors other than taxation.

For example: Assembly Bill 1482 regulates rent control in much of California. How a landlord holds property (trust vs. corporation, even one LLC vs. another) can (in somewhat limited circumstances) affect whether or not AB 1482 applies to a property.