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Commonly Asked Questions about LLC Property Acquisition

Privacy. An LLC adds an extra layer of privacy for any buyers that might not want their name to appear in countless public databases, where anyone can find out where they live. Celebrities and high net worth individuals may have legitimate security and other concerns accompanying the desire for privacy.
Your LLC can pay the mortgage on properties owned by the LLC, as these are legitimate business expenses.
When you invest in California real estate using an LLC, or limited liability company, you dont own the propertythe company does. This can afford you all sorts of protections and opportunities that are unavailable to those who use another method of holding the title to residential or commercial property.
A buyer of a disregarded entity (such as a single-member LLC that has not elected to be classified as a corporation) is treated as purchasing the entitys assets for U.S. federal income tax purposes. ingly, the buyer will receive a basis step-up in the targets assets.
Advantage #1: Protect Assets and Limit Liability The primary reason one might use an LLC or trust to purchase a residential property is to protect their assets and limit their liability. By forming an LLC, the homeowner separates their personal assets from those associated with the property.