…how would an LLC help my investment properties?
Forming a limited liability company (LLC) is a great way for any property owner investing in real estate to keep their personal assets protected. As a client of 208.properties and through our Owner Benefits Program we are here and ready to help you through the process.
Why form an LLC in Idaho?
With your properties under the umbrella of an LLC, your personal assets including your home, bank accounts, and other investments are protected in case of a lawsuit or legal action associated with rental property. Any other rental properties you own outside of the LLC will also be kept separate and secure from any legal action against the LLC. These protections are vital for any Idaho real estate investor looking to build their portfolio.
Additionally, forming an LLC may make you eligible for a tax deduction of up to 20%. You’ll be able to file your LLC income on your personal taxes for tax savings with pass-through taxation. As a pass-through entity, an LLC allows earnings and income to ‘pass-through’ as individual income for members and investors. Then, tax deductions of up to 20% can apply. Please consult a tax professional to determine your eligibility.
Forming an LLC in Idaho gives you the protections of a corporation without the taxes and formalities of one. With a properly formed and maintained LLC, the personal assets of all members will be separated from the debts and obligations of the LLC. All you need is a state-registered agent.
That’s where 208.properties comes in.
WHAT WE OFFER
As a registered agent, 208.properties can file all the paperwork to get your LLC established with the Idaho Secretary of State. You are legally required to hire and maintain a registered agent when forming an LLC, and 208.properties will help you navigate all the details and paperwork.
Here’s just some of what we do for our investors:
Privacy – At 208.properties, we believe in keeping our clients’ information as private as possible. When filing your LLC with us, we’ll use our address so yours won’t have to be on listed on public record with LLC.
In-State Mailing and Physical Address – With 208.properties as your registered agent, you don’t have to worry about relocating. We will always maintain an in-state address for your Idaho LLC, where we will accept legal documents and official mail for you.
Online Document Database – We forward and upload all official documents to you via email and our online owner portal so that you have all the information you need as quickly as possible.
Establishment and Maintenance of LLC – As long as you’re a client of 208.properties, we’ll keep your LLC updated and in good standing through annual report filings and 1099 updates if needed.
Starting your LLC
208.properties helps you through the process of establishing your LLC from the beginning. We’ll file all the necessary paperwork with the Secretary of State of Idaho, obtain an EIN from the IRS, and ensure that all laws are met regarding the establishment of reliable contact between your business, the State of Idaho, and the general public.
Here’s what’s included:
Filing of your Certificate of Organization with the Idaho Secretary of State
Filing of your SS-4 Form to obtain an EIN from the IRS
Establishment of an Idaho mailing address for the LLC
Provision of registered agent services
Filing of complete company annual reports with the Idaho Secretary of State
why would i want to file a quitclaim on my rental property?
Quitclaim deeds are commonly used to transfer property without an exchange of money in a low-risk transaction. This usually occurs when ownership of a property is moving between family members or when a property owner establishes an LLC and wants ownership of the property under the business entity.
NOTE- quitclaim deed affects ownership and the name on the deed, not the mortgage.
Because quitclaim deeds expose the grantee to certain risks, they are most often used between family members and where there is no exchange of money. Quitclaims are not typically used in situations where the property involved has an outstanding mortgage. After all, it would be difficult for many grantors to pay off a mortgage without proceeds from the sale of the property.
However, quitclaim deeds are still used in some instances in which the grantor has a mortgage. If this is the case, the grantor remains liable for the mortgage, even after ownership has been transferred away from them. Quitclaim deeds will transfer a title but will not affect mortgages.
In other instances, a quitclaim can force the immediate repayment of the entire mortgage. If a quitclaim occurs on a property under an active mortgage with a “due-on-sale” clause, the entire mortgage will become due as soon as the title is transferred. Even though no sale has occurred, the transfer of ownership will still invoke the “due-on-sale” clause.
Always consult with your mortgage lender or servicer prior to filing if you are considering quitclaiming any investment or rental property. Please call our office if you would like us to help you with a quitclaim process.