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Posts Tagged ‘Utah LLCs’

Utah LLCs and Personal Liability – When Are Owners Liable?

Posted by Jeremy Shorts on January 18, 2010

What if I want to use my new company (“Best Tenants Ever, LLC”) to lease your property so my employees can live there while they are working on the job?  Being an attorney, I sign the lease as “Jeremy Shorts, on behalf of Best Tenants Ever, LLC”?  I claim to be the best tenant ever, but signing in this way means that my LLC, and not me individually, is responsible for performing on the lease.  This includes making monthly payments and other critical terms of the contract.  If rents are ever late (i.e. business is slow or the project closes down), your lawsuit would be against “Best Tenants Ever, LLC” and not Jeremy Shorts.  This situation has the potential to create serious problems if the lease goes into default.  As the landlord, there are simple things you can do to protect yourself.

Creating Personal Liability

Instead of having Best Tenants Ever, LLC liable for the lease, how do you also make me, Jeremy Shorts, personally responsible?  There are two main things to consider.   Read the rest of this entry »

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Landlords & LLCs – Why You Should Create One

Posted by Jeremy Shorts on December 31, 2009

Opening Disclaimer & Warning

In this post I discuss the benefits of setting up a business entity which will hold title to rental properties and rental contracts.  There are clear benefits for doing so, but it is absolutely critical  to have the help of a professional as you work through these issues.  If these transfers are not done properly, you can create significant problems.  For example, by transferring title to a property into your LLC you can void your title insurance policy and/or cause your mortgage to go into default.  These issues can be worked through, but it is important that you have an attorney handle these critical aspects to ensure that additional problems do not arise.

Should You Set Up An LLC?

Many landlords are curious about whether they should set up an LLC (or another business entity) to hold their rental properties.  There are a few significant reasons why I always encourage clients with rental properties to do this.

Lawsuits & Liabilities

Any accidents or injuries suffered by your tenants or their guests create potential liability for the Read the rest of this entry »

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