Benefits and Pitfalls of Using LLC on Purchase of Every Property
LLC are being discussed a lot these days. From its literal meanings to more complex discussions, LLC is one of the hot topics. What I am going to discuss here are the scenarios in which LLC can be beneficial, and also the scenario in which LLC can be disadvantageous. However, before jumping into this detail, it would be worth mentioning what LLC is. LLC, also known as Limited Liability Company, is a structure according to which the members of company cannot be held liable for the company’s debts. LLC is made to be a hybrid, i.e. it acts as a corporation as well as partnership. While a corporation can get the services like limited liability through this structure, LLC can also facilitate partnerships through flow-through taxation. Incorporating this concept into the property purchase gives some advantages, but there are some pitfalls as well. So, it brings up the question whether or not one should go for the use of LLC upon the purchase of every property. The pros