Why should I create an LLC for my rental property?

The primary reason to use an LLC is to separate the rental business’s liabilities from your personal assets. When a rental property is put in an LLC, generally the LLC - not its members or managers - are responsible for the LLC’s debts and liabilities. RCW 25.15.126.

Also, an LLC shields an individual owner from personal liability and lawsuits generally, provided it is not a wrongful act of an individual outside the scope of the business of renting the property, or a tort by an individual. This further applies where the owner ensures to prevent comingling of funds and assets as well as expenses of the rental property with personal funds and expenses.

An LLC can also make it easier to keep rental income, expenses, contracts, and ownership interests organized, particularly if you have co-owners or multiple properties.

Contact us today to schedule a free discovery call with one of our attorneys to learn more.