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How to Add Property to an LLC

Putting property into an LLC, whether it’s a rental property, vacation property, or another asset, is a common asset protection strategy employed by landlords and real estate investors. The process is designed to shield the owner or real estate investor from potential liability involving their property or properties. It can also offer tax advantages along with other notable benefits.

However, the process is a bit more involved than moving money around or setting up an office. To ensure your books are in good standing and avoid potential tax problems, you’ll need to go through the proper steps and document them throughout the transaction.

Benefits of Titling Property in an LLC

Purchasing real estate and managing it is a major responsibility. You want to make sure that you can achieve a return on the investment made and, to the extent possible, you want to protect the investment from creditor claims.

Florida homestead protection laws are some of the broadest in the country, but they only extend to your principal residence. If you are in the market to purchase real estate for investment, you should consider owning that property in a separate limited liability company (LLC).