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Rental property- LLC or Land Trust?

NoMoreE46
Valued Contributor

Rental property- LLC or Land Trust?

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 ?  

 

 

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pizzadude
Moderator Emeritus

Re: Rental property- LLC or Land Trust?

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..

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 5
wasCB14
Super Contributor

Re: Rental property- LLC or Land Trust?

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.

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Creditplz
Valued Contributor

Re: Rental property- LLC or Land Trust?

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. 

Message 4 of 5
wasCB14
Super Contributor

Re: Rental property- LLC or Land Trust?


@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.

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