From: "Don Phillips" 
Newsgroups: misc.invest.real-estate alt.invest.real-estate alt.building.realestate alt.building.construction
Subject: Re: Form LLC company for rental home investment?
Date: Tue, 19 Aug 2003 21:31:59 GMT

"Bill"  wrote in message
news:15b4be0.0308182012.6bb5b9c7@posting.google.com...
> I am looking at acquiring a rental home this year and another one next
> year.  I am also wondering if I should form an LLC company to help
> protect myself from liabilities.  Some examples are:
>
> - Occupants visitors slip on tile in backyard swimming pool and break
> leg
>
> - I myself have a minor car accident and lawyers find out I own
> multiple rental properties
>
> - Nosey employer (mine) wonders why my name is directly listed to
> multiple homes in area
>
> - I get sued by anyone
>
> etc
>
> Ultimately, over the next few years, I plan to have 3 to 5 rental
> homes in my possession.
>
> Your thoughts/opinions wanted please

If what you are trying to do is shield your assets behind a company and you
are the company, I think any incorporation should serve that purpose.  I
associate LLC's with partnerships.  When you prepare your articles of
incorporation, perhaps your attorney will offer advice on which route to go.
From a tax perspective, you may want to consider naming it an S-Corporation
to avoid getting taxed twice.  C-Corporations pay income tax and dividends
paid to shareholders get taxed when they file.  S-Corporation taxes are paid
through the shareholders.


Sincerely,


Donald L. Phillips, Jr., P.E.
Worthington Engineering, Inc.
145 Greenglade Avenue
Worthington, OH  43085-2264

dphillips@worthingtonNSengineering.com
(remove NS to use the address)
614.937.0463 voice
208.975.1011 fax

http://worthingtonengineering.com