A Limited Liability Company (LLC) is simplest and most inexpensive business structure in the United States whereby the owners or members of the LLC are not personally liable for the company’s debts or liability. Two advantages to purchasing a home using an LLC include privacy and protection. By choosing to buy a home using an LLC, the owners of the LLC remain anonymous as their name does not become a part the public record and they are personally protected from individual liability in the event of a lawsuit.
Privacy for Homeowners Because the LLC Is Listed as the Property Owner
An LLC is the preferred way to acquire property for buyers who do not want their names or addresses in public record. An LLC prevents a buyer’s name from entering the public record because the name of the LLC appears on all public records, and not the name of the members or owners of the LLC. Thus, for those who do not want others digging through public records and obtaining their names and addresses, the LLC is a perfect solution. By using an LLC, it is difficult for someone to figure out your address or how much you paid for a property unless they know the name of your LLC.
An LLC Provides Owners More Protection in the Event of a Lawsuit
If someone owns their residence in their name, anyone who is injured on their property can sue them directly. Any lawsuit that exceeds their homeowner’s insurance (and umbrella insurance) will place other assets––including savings, investments and home equity––at risk of being garnished to pay the rest of the damages.
On the other hand, the biggest advantage of an LLC is that the members are not personally liable for the actions of company. The members personal assets (homes, cars, bank accounts, investments, etc.) are protected from creditors seeking to collect from the LLC. Therefore, if you own your home in an LLC, then the lawsuit can only name the LLC, and the only assets that can be used to pay off the suit are those assets held in the LLC, which usually would be limited to your home.
Investors purchasing properties they intend to rent to tenants commonly use an LLC because of the liability protection offered by the structure. When owning property as an LLC, property taxes and other homeowner expenses are paid by the LLC. One additional cost with an LLC (in addition to start-up costs such as legal and filing fees), is an annual-report filing fee which varies from state-to-state.
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Timothy L. Miles has committed his entire career to representing shareholders in complex litigation. Mr. Miles has been recognized for numerous awards for his legal abilities in his struggles to fight for shareholder rights not only among his peers but also those in the judiciary who see firsthand not only his tenacity for protecting shareholder rights, but how he always adheres to the utmost ethical standards when litigating against his adversaries and in a Court of Law. These efforts have resulted in Mr. Miles being recognized not only as an industry leader in his fight for shareholders but also in the ethical manner in which he conducts himself as a lawyer and member of the bar. These recognitions include: The AV® Preeminent™ Rating by Martindale-Hubble®, which is bestowed on fewer than 5 percent of attorneys, in Securities Law, Litigation and Class Actions (2014-2019); The AV® Preeminent™ Attorney – Judicial Edition, the Highest Possible Rating in Both Legal Ability & Ethical Standard Reflecting the confidential opinions on members of the Bar and Judiciary (2017-2010); The Top-Rated Lawyer in Litigation™ for Ethical Standards and Legal Ability by Martindale-Hubble® (Feb. 2015); Superb Rated Attorney, (10.0 out of 10), the Highest Rating Possible by Avvo; Avvo Top Rated Lawyer 2017 & 2018 (Avvo); America’s Most Honored Professionals – Top 1% (2016-2018) (American Registry). Mr. Miles is also a member of Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, which is by invitation only and according to the National Trial Lawyers Association, is “extended to those attorneys who exemplify superior qualifications, trial results, and leadership in their respective state based upon objective and uniformly applied criteria.” The press release by The National Trial Lawyers Association announcing Mr. Miles selection for inclusion into its Top 100 Trial Lawyers stated: “With the selection of Timothy L. Miles by The National Trial Lawyers: Top 100, Miles has shown that he exemplifies superior qualifications, leadership skills, and trial results as a trial lawyer. The selection process for this elite honor is based on a multi-phase process which includes peer nominations combined with third party research.” Mr. Miles focuses his practice on securities fraud class actions, shareholder derivative actions, and corporate mergers and acquisitions class actions.