Boise Idaho Business Guide: Protection
No Asset Protection
The top reason to put your rental properties into an Idaho LLC is to protect your other assets.
Let’s look at an example. Your tenant trips and falls down the stairs suffering a serious injury. They hire a lawyer and decide to sue you. If your rental property is in your own name, they will be suing you personally, going after your personal assets, savings, etc. You are not protected.
LLC Asset Protection
Now let’s say You had deeded your rental property into an Idaho LLC. The lease signed with the tenant names the Landlord as your LLC, not you.
So the same tenant falls down the stairs and decides to sue. They will now only be able to sue ABC LLC. If they win, the most they could take from you would be the assets owned by the LLC (the rental). They could not go after your personal savings, investments, or get a judgment against you personally.
Remaining Somewhat Anonymous
If a person owns real estate in their own name, anyone can see all their properties and the value of those properties. Do you really want the world to easily access how many properties you own and the value of them? If you did a name search but all of your properties were titled in an LLC there would be no records found.
There are so many tax benefits of operating your rental activities in a business formed as an Idaho LLC. With your rental business you can now deduct all expenses, cost, fees, help, professional services, office expenses, phone, advertising, key replacements, upgrades, new equipment and supplies, cleaning, documents, landscaping, repairs, maintenance and the list goes on.Click for Boise Payroll Service Click to Form an Idaho Business