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  1. #1
    Join Date
    Oct 2008
    Posts
    2

    Default LLC Naming of Business of Rental Properties

    I own 2 rental units in Georgia and have been advised to run this
    business under a LLC for liability reasons. Is there any reason that
    the name of the business should or should not have a family name
    included in the name of the LLC? For example XXXXXX "Last Name"
    Services, LLC, or YYYYY "Last Name" Enterprises, LLC etc (where
    XXXXX is a word and "Last Name" is my actual last name? Thanks

  2. #2
    Join Date
    Sep 2005
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    74,865

    Default Re: LLC Naming of Business of Rental Properties

    You mean, such as your not wanting your family name in the business name? Seriously, if it doesn't bother you, why would anybody else care?

  3. #3
    Join Date
    Oct 2008
    Posts
    2

    Default Re: LLC Naming of Business of Rental Properties

    My wife would prefer to have the family name in the name of the business. But I am not sure that this is wise, as forming an LLC is to help with liability issues and separate your personal assets from your business assets. So my question is would it be better to leave the family name out of any business?

    Example could be a renter gets injured on the property and decides to sue the LLC, is there any chance that having a name outside of the family name would somehow help in keeping our personal assets protected better?

    Thanks, Brett

  4. #4
    Join Date
    Dec 2008
    Posts
    4

    Default Re: LLC Naming of Business of Rental Properties

    The LLC protects you from personal liability regardless of what you name your business. Just make sure any exisitng properties and any new ones purchased are deeded under the LLC name. From my understanding, if the homes are not owned by the business you are not covered personally.

  5. #5
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: LLC Naming of Business of Rental Properties

    I wouldn't worry about the name, but I would seek the advice of a competent attorney in your state as to your liabilities if something should happen. People's been told that form an LLC for rentals , and it's the "be all", and "end all". I own rentals in NY State, and these are the issues:

    - Hire an unlicensed contractor in NY State without workman's comp, and YOU ARE personally liable, LLC or not. State law holds corporate officers, LLC members for failure to obtain workmans comp. If you hired an unlicensed roofer, he falls off the roof, you can count on the hospital sending YOU the bill with the question "who's your workman's comp" carrier"??

    - Manage the units yourself and you can count on people, tenanats and others who gets injured (slip and fall in front of the place where YOU failed to clean up), suing YOU personally for negligent management, together with the LLC, unless you plan to hire the task out to a management company, who should carry the proper insruance.

    In other words, you'll need to be covered personally for liability, LLC or not. People suing you under the above scenarios does not care if your name is on the LLC or not.

    Usually, you'll need to obtain a "commercial policy" under an LLC that also covers the officers, or members. By owning as an individual, I can be covered under "non-owner occupied" insurance, and I can obtain far higher coverage for the same amount of money as compared to commercial coverage.

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