An LLC or limited liability company is a type of corporate structure that is created in order to protect it’s owner or owners from personally being sued for the company’s liabilities and debts. These owners are also known as members. This type of entity is regulated on the state level and does not pay taxes on it’s earnings or profits. Rather, the profits earned by the entity are passed through to it’s members on their individual tax returns. Many individuals prefer this type of structure because it avoids the dreaded double taxation that a corporation incurs where it is taxed at the business entity level and then again at the personal level. LLCs can be a great option when purchasing real estate and a critical part of an estate plan. Speak with your accountant or attorney on using this structure to own real estate. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
