Are you a rental property owner here in the Baltimore area? Perhaps you’ve wondered what the best approach is for titling your rental property? Let’s take a look at the three main benefits of titling your Baltimore rental property into an LLC.
- Protect Assets – titling a Baltimore property to a limited liability company (LLC) and treating it as a business (creating separate bank accounts, maintaining insurance in the name of the LLC, etc.) insulates the business operation from your personal assets and provides you with limited liability personally.
- Pass Through Taxation – normally businesses are taxed on profits and owners are taxed again when they make income from the business operation. With an LLC, the profits pass through to your personal tax return, which minimizes the amount of money taken out of your income for taxes.
- Track and Deduct Business Expenses – having the income and expenses flow through your LLC makes it easier to track legitimate business expenses and keep them separate from personal expenses.