Home inspection, appraisals and other deductions part of purchasing rental property process

[AmeliesUncle]

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@Anonymous_ wrote:

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LLCs offer every bit as much personal liability protection as corporations (in Florida and other states).

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While I agree that might be hypothetically true in many cases, I also think that people are much less likely to treat a LLC as a separate entity, versus a corporation, which could 'pierce the veil' of protection.

As a side note, I was told by a friend that his big-time business lawyer said that in some cases a corporation has more protection than an LLC in my state (Minnesota).   I have no idea how accurate that is or if it is outdated information, but that is what the lawyer said (it was something along the lines that if a person was a member of multiple LLC's and one LLC was sued that other LLC's could possibly be affected, versus a corporation would not go past that one corporation).

[Anonymous_]

The information is simply not accurate in the sense that a corporation offers more protection than LLC. LLCs were actually designed to provide as much protection as corporations but without the hassle of issuing shares to owners (shareholders), ownership restrictions, distribution restrictions, et al.

Regardless, there are many, many more LLCs in the country than there are corporations (as in something on the order of 3-4 times as many LLCs as there are S and C corporations combined). As a result, there are far more opportunities for errors to be made (as well as lackadaisical members making erratic or sloppy decisions, commingling funds, etc.). Therefore, it only stands to reason that there would be more lawsuits attempting to impose personal liability on member(s) of LLCs.

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[Anonymous_]

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Just out of curiosity, why are you not posting under "TaxGuyBill"?

[AmeliesUncle]

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@Anonymous_ wrote:

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Just out of curiosity, why are you not posting under "TaxGuyBill"?

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I had somehow accidently got logged into a different account, then I somehow had gotten temporarily locked out of the TaxGuyBill account.  I can now access it again, but after posting for a while under this account, I haven't bothered to switch back.

[Anonymous_]

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@AmeliesUncle wrote:

....I somehow had gotten temporarily locked out of the TaxGuyBill account.  I can now access it again, but after posting for a while under this account, I haven't bothered to switch back.

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I have heard of that happening to other users. Regardless, I suppose it makes no difference under which moniker you post. 🙂