Legal Question in Landlord & Tenant Law in Wisconsin
I’m planning on renting out my house in December so I setup an LLC, got my EIN and setup a business bank account. I talked to the bank and found out I can’t transfer the deed which I own to my LLC. When setting up a rental lease can I use the LLC as the leaser and can checks be made to the LLC even though the LLC doesn’t own the property since I’m not able to transfer it?
1 Answer from Attorneys
Yes, you can use the LLC as lessor, but it may not be legally binding, since the LLC does not really own the property. Technically, saying that it is the owner would therefore be a misrepresentation which could be used against you later in litigation and subject you to punitive damages and actual reasonable attorney fees spent by the opposing party. Tax wise, however, it may not matter much, since most LLC's are pass through entities, taxed as personal income either way. Of course, you will have none of the protection from personal liability which an LLC running a business would otherwise afford you.
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