Q: Is it best to own my rental properties in a land trust owned by an entity (LLC)?
A: It depends on what you’re trying to accomplish. From a tax standpoint, both the entity and the land trust will have minimal impact savings-wise. However, the entity will afford you liability protection (obviously a good thing), and the land trust will afford you privacy (also a good thing if this is something you value). As always, check with your attorney and advisor before proceeding.
Today's Member Forum question spotlight deals with entities and married couples:
Q: If a married couple owns an LLC together, can they be considered a single member?
A: Yes, if they live in a community property state. This is important because it means the LLC will be considered disregarded versus a partnership, both of which trigger various tax implications. Check to see if your state falls into this category.