Buying Real Estate in NYC Through an LLC
Pros and Cons of Buying Property as an LLC in NYC: https://www.hauseit.com/buying-property-in-nyc-through-a-llc/
Calculate Your Buyer Closing Costs: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
Is Buying Property in NYC Through an LLC a Good Idea?
It depends on what your objectives are. If you are a celebrity or billionaire concerned about personal privacy, then yes: an LLC will prevent your name from being recorded in public records and indexed by search engines.
If you are a celebrity or someone whom the press is after, it’ll be extremely easy for even the most inexperienced investigative reporter to find out your home address and what you paid for your home unless it’s hidden through an LLC.
Furthermore, if you are an investor with a large portfolio of other assets, it may make sense to shield your other assets from liability through an LLC. This way, in case a tenant or visitor to your property trips and falls and decides to sue you for an unreasonable sum, only that specific LLC will be liable in the lawsuit and your other assets will not be involved.
Keep in mind that it may be simpler and cheaper to simply buy rental properties in your name and to purchase a personal umbrella insurance policy to cover against lawsuit claims in excess of what a traditional homeowner’s insurance policy covers.
If you’re thinking of buying a property in NYC, you may also be interested in estimating your buyer closing costs in NYC using Hauseit’s interactive closing cost calculator available at www.hauseit.com. You can also save money on your purchase by requesting a Hauseit Buyer Closing Credit.
What Are Some Drawbacks to Buying Property in NYC Through an LLC?
The biggest drawbacks of using an LLC are higher upfront and running costs, so you’ll have to really ask yourself whether it’s worth buying through an LLC versus in your own name.
Set-up Costs
You’ll need to spend up to several thousand dollars to set up the LLC, hire a registered agent and fulfill publication requirements. This is assuming you do this yourself using cost efficient providers. If you hire a lawyer to set the structure up for you, expect to pay significant legal fees on top.
Running Costs
You will have higher running costs from owning your property through an LLC, even if it is a single member LLC. You will have to pay yearly for a registered agent so that you can use their contact information in public records.
If you will be owning the LLC with partners, you’ll need to pay additional yearly accounting fees for the company’s tax filings and the preparation of individual K-1s for each partner. You will have recurring fees to the State of New York to maintain the LLC, and you may have the pay the Unincorporated Business Tax (UBT) if you reside in NYC.
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
Calculate Your Buyer Closing Costs: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
Is Buying Property in NYC Through an LLC a Good Idea?
It depends on what your objectives are. If you are a celebrity or billionaire concerned about personal privacy, then yes: an LLC will prevent your name from being recorded in public records and indexed by search engines.
If you are a celebrity or someone whom the press is after, it’ll be extremely easy for even the most inexperienced investigative reporter to find out your home address and what you paid for your home unless it’s hidden through an LLC.
Furthermore, if you are an investor with a large portfolio of other assets, it may make sense to shield your other assets from liability through an LLC. This way, in case a tenant or visitor to your property trips and falls and decides to sue you for an unreasonable sum, only that specific LLC will be liable in the lawsuit and your other assets will not be involved.
Keep in mind that it may be simpler and cheaper to simply buy rental properties in your name and to purchase a personal umbrella insurance policy to cover against lawsuit claims in excess of what a traditional homeowner’s insurance policy covers.
If you’re thinking of buying a property in NYC, you may also be interested in estimating your buyer closing costs in NYC using Hauseit’s interactive closing cost calculator available at www.hauseit.com. You can also save money on your purchase by requesting a Hauseit Buyer Closing Credit.
What Are Some Drawbacks to Buying Property in NYC Through an LLC?
The biggest drawbacks of using an LLC are higher upfront and running costs, so you’ll have to really ask yourself whether it’s worth buying through an LLC versus in your own name.
Set-up Costs
You’ll need to spend up to several thousand dollars to set up the LLC, hire a registered agent and fulfill publication requirements. This is assuming you do this yourself using cost efficient providers. If you hire a lawyer to set the structure up for you, expect to pay significant legal fees on top.
Running Costs
You will have higher running costs from owning your property through an LLC, even if it is a single member LLC. You will have to pay yearly for a registered agent so that you can use their contact information in public records.
If you will be owning the LLC with partners, you’ll need to pay additional yearly accounting fees for the company’s tax filings and the preparation of individual K-1s for each partner. You will have recurring fees to the State of New York to maintain the LLC, and you may have the pay the Unincorporated Business Tax (UBT) if you reside in NYC.
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
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