Why Real Estate Investors Should Have an LLC If You Don’t Have One, Consider It
In 2021, the number of LLC owners grew to 10.2 million, a full 5.25% jump from 2018. Any individual can be an owner or member of a limited liability company (LLC), but obtaining an LLC is an especially great move for real estate investors. Some of the biggest companies have LLCs behind them — like Alphabet LLC, which is behind Google. Let’s explore the top three reasons why setting up an LLC for your real estate investing will benefit you. Protection Being an LLC owner can offer you unique protection. Those who form the company, whether it's one person or a partnership, will have built- in protection for their personal investments. For example, if one of the tenants in your property sues the LLC for failure to maintain upkeep of the yard, your personal property and accounts won’t be up for grabs during the lawsuit. It’s good to separate your personal life from your business; an LLC can protect you. Opportunity As you begin to invest, you’ll likely need a loan. Banks often offer better loan terms if you have an LLC. An LLC doesn’t need to be a whole boardroom full of investors; you just need one person. However,
a bank is less likely to give a single investor good terms on their loan. Owning an LLC will provide you with better interest offers and repayment terms. It’s still a business loan, so a minimum annual revenue, credit score, and time in business are often required. Lower Taxes We’ve left the best for last: tax savings. An LLC can offer protection from double taxation. The owner of the LLC can choose to get the profits and losses reported on their personal tax returns rather than through a business structure. You can also classify your LLC as an S or C-class corporation and gain that specific tax status. Each has pros and cons, and we encourage you to ask your accountant or tax preparer which would best suit your investments. Who wouldn’t be drawn to lower taxes, protection for your personal investments, and better loan terms? These can grow your ability to invest in property as you gain flexibility and lower liability within an LLC. Ask your accountant or tax preparer for the specifics of your financials. With our experience, we’re available to answer any questions. Excellence comes standard at Littlejohn Law, and we’re ready to help it become your standard.
TAKE A BREAK
Puff Pastry Berry Hearts
Inspired by Weelicious.com
INGREDIENTS •
1 package frozen puff pastry, defrosted 1 cup heavy cream
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1 tsp powdered sugar 1/2 cup fresh raspberries (or berries of your choice)
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DIRECTIONS
1. Preheat oven to 400 F. Unfold the puff pastry and use a heart- shaped cookie cutter to cut into heart shapes. 2. On a baking sheet, place puff pastry hearts and bake for 10–12 minutes or until golden brown. 3. In a standing mixer, whip the cream on medium-high speed for 2–3 minutes. Add the powdered sugar and beat on high for 30 more seconds or until thick and fluffy. 4. Remove hearts from the oven and allow to cool completely. Slice each heart in half between pastry layers to create 2 hearts. Top the bottom half with whipped cream and berries, and place the other half on top to form a sandwich.
AQUARIUS CANDY CUPID GROUNDHOG
HEART LINCOLN CHOCOLATE PENNSYLVANIA
PHIL PRESIDENTS VALENTINE WINTER
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