Getting Homeowner’s insurance policy for LLC?

[sdduuuude]

Great post, Kingside. Rare to find a useful, straightforward answer born from experience and devoid of nonsensical political commentary these days.

SK – I agree with you, by the way. Not sure how the LLC protects the house at all. I guess if something happens to a guest of the house such that the owner, not renter, gets sued, it would offer some protection to the other assets belonging to the owner of the LLC. Still, the house could get taken from the LLC.

But, given Kingside’s insight, is it really doing anything ?

I always wondered if an LLC would provide protection from a property-tax basis. That is – sell the LLC to the next owner instead of selling the house and keep the property tax base the same.

[Fearful]

[quote=threadkiller]Just had to jump in and say I doubt every landlord has a business license. I made a u-turn in front of a bunch of apartments today, did I break the law? Ok maybe it was a 3 point turn.[/quote]
Business licenses are a completely different issue from company legal structure.

Many landlords do business as a sole proprietorship. This has no registration fees with the state.

If the landlord is an LLC, it is hard for me to imagine that it is okay for the LLC to not be registered in California. Owning the property and collecting rent is a business activity. Merely owning the property may not be an activity, as it is passive.

Franchise Tax Board is a good deal more aggressive about revenue collection than the local police that would be enforcing your metaphorical three point turn.

Maybe the original poster is using the LLC to shelter from estate taxes. You do that by putting assets in the LLC and then giving your heirs pro rata shares of the LLC – shares that are in total valued less than the initial value because part ownership is less valuable than controlling interest.

[Fearful]

[quote=threadkiller]Just had to jump in and say I doubt every landlord has a business license. I made a u-turn in front of a bunch of apartments today, did I break the law? Ok maybe it was a 3 point turn.[/quote]
Business licenses are a completely different issue from company legal structure.

Many landlords do business as a sole proprietorship. This has no registration fees with the state.

If the landlord is an LLC, it is hard for me to imagine that it is okay for the LLC to not be registered in California. Owning the property and collecting rent is a business activity. Merely owning the property may not be an activity, as it is passive.

Franchise Tax Board is a good deal more aggressive about revenue collection than the local police that would be enforcing your metaphorical three point turn.

Maybe the original poster is using the LLC to shelter from estate taxes. You do that by putting assets in the LLC and then giving your heirs pro rata shares of the LLC – shares that are in total valued less than the initial value because part ownership is less valuable than controlling interest.

[Fearful]

[quote=threadkiller]Just had to jump in and say I doubt every landlord has a business license. I made a u-turn in front of a bunch of apartments today, did I break the law? Ok maybe it was a 3 point turn.[/quote]
Business licenses are a completely different issue from company legal structure.

Many landlords do business as a sole proprietorship. This has no registration fees with the state.

If the landlord is an LLC, it is hard for me to imagine that it is okay for the LLC to not be registered in California. Owning the property and collecting rent is a business activity. Merely owning the property may not be an activity, as it is passive.

Franchise Tax Board is a good deal more aggressive about revenue collection than the local police that would be enforcing your metaphorical three point turn.

Maybe the original poster is using the LLC to shelter from estate taxes. You do that by putting assets in the LLC and then giving your heirs pro rata shares of the LLC – shares that are in total valued less than the initial value because part ownership is less valuable than controlling interest.

[Fearful]

[quote=threadkiller]Just had to jump in and say I doubt every landlord has a business license. I made a u-turn in front of a bunch of apartments today, did I break the law? Ok maybe it was a 3 point turn.[/quote]
Business licenses are a completely different issue from company legal structure.

Many landlords do business as a sole proprietorship. This has no registration fees with the state.

If the landlord is an LLC, it is hard for me to imagine that it is okay for the LLC to not be registered in California. Owning the property and collecting rent is a business activity. Merely owning the property may not be an activity, as it is passive.

Franchise Tax Board is a good deal more aggressive about revenue collection than the local police that would be enforcing your metaphorical three point turn.

Maybe the original poster is using the LLC to shelter from estate taxes. You do that by putting assets in the LLC and then giving your heirs pro rata shares of the LLC – shares that are in total valued less than the initial value because part ownership is less valuable than controlling interest.

[Fearful]

[quote=threadkiller]Just had to jump in and say I doubt every landlord has a business license. I made a u-turn in front of a bunch of apartments today, did I break the law? Ok maybe it was a 3 point turn.[/quote]
Business licenses are a completely different issue from company legal structure.

Many landlords do business as a sole proprietorship. This has no registration fees with the state.

If the landlord is an LLC, it is hard for me to imagine that it is okay for the LLC to not be registered in California. Owning the property and collecting rent is a business activity. Merely owning the property may not be an activity, as it is passive.

Franchise Tax Board is a good deal more aggressive about revenue collection than the local police that would be enforcing your metaphorical three point turn.

Maybe the original poster is using the LLC to shelter from estate taxes. You do that by putting assets in the LLC and then giving your heirs pro rata shares of the LLC – shares that are in total valued less than the initial value because part ownership is less valuable than controlling interest.

[earlyretirement]

Hey guys,

Sorry for the delay….flew to Hawaii and here for the next month for some R & R.

Really, I don’t want to go into all the various reasons why this makes sense for me but trust me it does. I know my situation is different than 99.99% of the typical Americans out there. Especially considering my wife and I have residency status in other countries. But checking with estate planning lawyers, this makes sense for my situation.

And I’ve since talked to several insurance agents from various companies and it seems what I’m doing is becoming more and more common so it sounds like other people are utilizing this strategy.

[earlyretirement]

Hey guys,

Sorry for the delay….flew to Hawaii and here for the next month for some R & R.

Really, I don’t want to go into all the various reasons why this makes sense for me but trust me it does. I know my situation is different than 99.99% of the typical Americans out there. Especially considering my wife and I have residency status in other countries. But checking with estate planning lawyers, this makes sense for my situation.

And I’ve since talked to several insurance agents from various companies and it seems what I’m doing is becoming more and more common so it sounds like other people are utilizing this strategy.

[earlyretirement]

Hey guys,

Sorry for the delay….flew to Hawaii and here for the next month for some R & R.

Really, I don’t want to go into all the various reasons why this makes sense for me but trust me it does. I know my situation is different than 99.99% of the typical Americans out there. Especially considering my wife and I have residency status in other countries. But checking with estate planning lawyers, this makes sense for my situation.

And I’ve since talked to several insurance agents from various companies and it seems what I’m doing is becoming more and more common so it sounds like other people are utilizing this strategy.

[earlyretirement]

Hey guys,

Sorry for the delay….flew to Hawaii and here for the next month for some R & R.

Really, I don’t want to go into all the various reasons why this makes sense for me but trust me it does. I know my situation is different than 99.99% of the typical Americans out there. Especially considering my wife and I have residency status in other countries. But checking with estate planning lawyers, this makes sense for my situation.

And I’ve since talked to several insurance agents from various companies and it seems what I’m doing is becoming more and more common so it sounds like other people are utilizing this strategy.

[earlyretirement]

Hey guys,

Sorry for the delay….flew to Hawaii and here for the next month for some R & R.

Really, I don’t want to go into all the various reasons why this makes sense for me but trust me it does. I know my situation is different than 99.99% of the typical Americans out there. Especially considering my wife and I have residency status in other countries. But checking with estate planning lawyers, this makes sense for my situation.

And I’ve since talked to several insurance agents from various companies and it seems what I’m doing is becoming more and more common so it sounds like other people are utilizing this strategy.

[edna_mode]

I’ll bite…I’m not asking about anyone’s particular details, but could someone give some hypothetical examples under which LLC ownership of their house provides some benefit of any kind?

[edna_mode]

I’ll bite…I’m not asking about anyone’s particular details, but could someone give some hypothetical examples under which LLC ownership of their house provides some benefit of any kind?

[edna_mode]

I’ll bite…I’m not asking about anyone’s particular details, but could someone give some hypothetical examples under which LLC ownership of their house provides some benefit of any kind?

[edna_mode]

I’ll bite…I’m not asking about anyone’s particular details, but could someone give some hypothetical examples under which LLC ownership of their house provides some benefit of any kind?

[Author]

Posts