When you purchase a home, you may want to consider buying as an LLC. There are a number of reasons property buyers may want to do this, including shielding their identities from the media or the public. Some sellers may believe using a limited liability company is a little suspicious, but it's not. It's a common practice, and here are a few reasons why.
First, and LLC helps protect your identity when you make a purchase. Deeds and other records are public documents, but an LLC can help protect your personal identity and prevent others from seeing which properties you own.
Some people who choose to use an LLC do so because their attorneys suggested it. For particularly expensive properties, an LLC can be a good way to protect against legal and tax liabilities. The LLC automatically protects a person's identity, even if that's not the purpose of the LLC's usage in this case.
Another reason to consider using an LLC to make a real estate purchase is to prevent double taxation. Sometimes, proceeds made by a company are taxed and then taxed again when they turn into income for each of the individual partners in the company. An LLC shields the proceeds in a way that results in them being taxed only once.
These are only a few reasons why a person would want to use an LLC to purchase a home. If this is something you're interested in learning more about, your real estate attorney can talk to you about the benefits of choosing to use an LLC before you buy.
Source: USA Today, "7 reasons property buyers use LLCs, from legit to not," Steve Reilly and Nick Penzenstadler, accessed June 15, 2017