Legal Question in Real Estate Law in Illinois

Re: LLC or Partnership

The entity invested in by your family has to do with their exposure under the Law, IF, a LLC then their personal assets are not at risk if things go bad, where as a Partnership debt can follow through in the collection field of law to all your personal assets.

Re: LLC or Partnership

The short answer to your question is "yes," you would generally want to insulate your personal liability arising from ownership of an investment real estate property. There are a number of ways of doing so, depending upon the needs/desires/goals, etc. of the owners.

Another consideration is how the family members will manage the property, i.e., which role each family member will have. These are additional reasons to consider a formal ownership structure.

A limited liability company (LLC) or a Subchapter "S" corporation seem to afford the best flexibility and protection, but, again, it depends upon the particular circumstances of the owners/investors.

-- Kenneth J. Ashman; [email protected]; www.lawyers.com/alo