LLC vs Personal Name for Rental Property

Should you hold rental property in an LLC or your personal name? Compare liability protection, financing, taxes, costs, and when each makes sense.

LLC

PROS

✓Liability protection — separates personal assets

✓Professional appearance for tenants

✓Easier to add partners

✓Separate banking and accounting

✓Series LLC option in some states

CONS

✗Commercial loan rates (higher)

✗Annual state filing fees ($50-$500/yr)

✗More complex tax filing

✗Cannot use FHA/VA/conventional financing

✗Transfer taxes in some states

Personal Name

PROS

✓Access to residential financing (lower rates)

✓FHA loans with 3.5% down

✓No annual state fees

✓Simpler tax filing

✓Lower closing costs

CONS

✗Personal liability exposure

✗Harder to add partners later

✗Commingled finances

✗Less professional appearance

✗Lawsuit risk to personal assets

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