Do I need to incorporate an investment rental property?

[kalvin71]

I am looking at buying a 4 unit investment property to rent out. I have never had much money so it would be the first real asset I've owned. I have done a lot of research and read many book. I am 23 and am in the military. a lot of the material I have read says it is good to form an LLC to purchase and hold the property with in order to protect my personal assets in case a resident files a law suit or in case of bankruptcy. I have not had a change to speak to a lawyer due to the fact I am deployed. Do I really need to form an LLC if I don't really have any tangible assets that are at risk of a law suit? I would appreciate any answers but I am mainly interested in those who have experience in multifamily properties. Thanks

[lundie]

no idea

[zadok]

I myself hold multiple LLCs for my rental properties...Even with no current assets it is the way to go as if you are sued and the building is in your own name you risk future earnings or holdings being attached if a lien is placed...I did it to protect my families home and my personal holdings...Your liability in an incident is limited to your insurance coverage which is usually a mil...You can get the paperwork and do it yourself or a Lawyer will charge about $500...It also makes separating things easier for tax purposes.

[arne33]

Strongly suggest that you ask an attorney in your state. This has come through to Australia [au.yahoo.com] and bankruptcy and property issues change between States in Australia, In the US I understand that each state would have similar, but not identical laws, and that Texas and Florida have the most liberal bankruptcy laws, and you can still retain your home and car in those states even when bankrupt. This is something I have heard only, so don't rely on it. Its too important to get wrong.
Try this site www.lawguru.com/