Is it important or necessary for me to have an LLC for a duplex rental business iin order to be protected from liability?

UPDATED: Mar 21, 2013

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Is it important or necessary for me to have an LLC for a duplex rental business iin order to be protected from liability?

I am the sole owner.

Asked on March 21, 2013 under Business Law, Texas


B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You are not required to have an LLC in order to operate a duplex rental business.  However, the risk you take is if you are sued, then your personal assets could be at risk to satisfy a judgment.  If you want to protect your personal assets, then you could convert your sole proprietorship to an LLC and have yourself named as the sole owner/shareholder.  Before your set up an LLC, it really helps to visit with a business law attorney and tax attorney to help you weigh all of the advantages of incorporation.  It will cost you a bit on the front end to set up an LLC, but if you properly plan the LLC it can save you a great deal of financial grief on the back end.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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