Yorkville Real Estate LLC Attorney

 Posted on January 09, 2023 in Real Estate

Lawyer in Oswego and Kendal County Helping Real Estate Investors with LLCs

Forming a limited liability company or otherwise known as an “LLC” is a useful strategy to hold real estate investments. An LLC provides limited liability protection for the owners. The owners of an LLC are called “members” of the LLC. This means that if the LLC is sued or incurs debts, the personal assets of the members such as their homes or personal bank accounts generally should not be at risk. Consulting a Yorkville Real Estate LLC Lawyer is a wise decision because there are circumstances where a Real Estate LLC fails to properly protect one’s personal assets.

An LLC is a useful tool for managing one’s liability risks. Titling the real estate investment property into an LLC is a way to reduce one’s liability exposure to creditor concerns and lawsuits. Our economy is facing increasing risks associated with the pending recession and advanced planning is critical to properly protect one’s wealth and financial assets.

In Illinois, there are two types of limited liability companies (LLCs): single-member LLCs and multi-member LLCs. A single-member LLC is an LLC that has only one owner called a “member”. Single-member LLCs are treated as sole proprietorships for tax purposes, meaning that the business income and losses are reported on the member’s personal tax return.

In contrast, a multi-member LLC is an LLC that has two or more owners or is otherwise called “members” of the LLC. Multi-member LLCs are treated as partnerships for tax purposes, meaning that the business income and losses are reported on the individual tax returns of the members. LLCs may be taxed as corporations, which may reduce one’s tax liabilities.

In Illinois, limited liability companies (LLCs) may be taxed as corporations if they meet certain criteria. Specifically, an LLC may be taxed as a corporation if it has elected to be taxed as a corporation. The corporation may be taxed as an “S” corporation or “C corporation”.

An LLC may elect to be taxed as a C corporation by filing Form 8832, Entity Classification Election, with the IRS. An LLC may be taxed as an “S corporation” by filing Form 2553, Election by a Small Business Corporation, with the IRS. This provides flexibility and allows the members of the LLC to elect the taxation, which is most favorable for them. Members of an LLC or businesspersons should consult a Yorkville Real Estate LLC Attorney to advise them on the best liability and tax reasons for your real estate venture.

Why a Real Estate Limited Liability Company?

A Real Estate Limited Liability Company is an LLC that invests in multi-unit apartment buildings, commercial properties, or residential real estate. Setting up an LLC is a wise way of setting up one’s real estate investments in a manner to minimize liability concerns and increases profits. Many real estate investors falsely believe that holding their real estate interests in a husband and wife’s name is a safe method. Insurance strategies alone are insufficient to protect one’s investments in real estate. Often, insurance companies fail to cover claims, or the type of litigation is outside the scope of coverage.

Setting up ownership of investment or commercial real estate as an LLC is useful for a variety of reasons. The first reason is limited liability protection for the owners of the LLC. This means that if the LLC is sued or incurs debts, the creditors of the LLC are limited to going after the assets of the LLC. Limited liability protection is important to real estate investors because owning and managing multiple rental properties exposes one to the risk of lawsuits, creditors' claims, and other liability concerns.

Additionally, the LLC is a useful tool for managing real estate interests because it is easier to sell or transfer ownership interests in the property. For instance, an LLC may contain multiple owners of the real estate enterprise and each member has varying percentages of ownership.

Often, members go through divorces and have estate issues as the result of a death or incapacity of a member, which causes concern to the entire LLC ownership team. LLC is a useful strategy to minimize death, divorce, and incapacity concerns by creating a smooth transition upon one’s death or incapacity.

Generally, members of an LLC do not want to go into business with another member’s wife or kids. Failing to plan one’s real estate interests produce legal risks that cause thousands of dollars in costs and fees.

Insurance is not a proper method to plan for these life events. There are legal problems, which can be solved by having a Yorkville Real Estate LLC Lawyer advise you on your business, family, and asset protection strategies.

Real Estate LLCs provide the following benefits:

• Favorable Loan Terms. Many mortgage companies have better rates than hard money lenders. Hard-money lenders produce loans, which are most costly because the risk of loss is greater.

• Tax Advantages. Depending on how one sets up an LLC, tax planning is critical because it saves thousands of dollars in legal fees and costs.

• Limiting Personal Liability. It is impossible to predict the multiple liability and tax concerns with a business or real estate venture. Setting up an LLC is a wise decision to limit one’s financial exposure to the risks and liability concerns involved in real estate investments. Foreclosures and unforeseen risks place one’s personal and family assets in a vulnerable position.

• Ownership Transfer. Transferring ownership in an LLC is much easier than when one’s assets are in an individual’s name. Divorce, death, and incapacity concerns are significant liability risks, which can be alleviated or minimized by structuring one’s business and real estate holdings in an LLC. The LLC should have a well-written LLC Operating Agreement, which anticipates the problems associated with multi-member LLCs.

Hire The Best Real Estate Team for Your Real Estate Closings in Kendall County & Nearby Counties

Whether you are purchasing a residential or commercial investment property, Gateville Law Firm has the best and most experienced real estate legal team in Kendall County and nearby areas.

Our support staff has over 33 years of experience working with real estate title companies.

Our business manager has over 24 years of title insurance and real estate closing experience where she has overseen thousands of real estate closings and transactions over the years. Laurie Vaughn was the title manager for a top-three producing title company for Fidelity Title Insurance Company.

This title and real estate experience of multi-team members gives our real estate team the level of expertise and experience that no other law firm possesses. Our real estate attorneys have over 18 years of real estate and title insurance experience and have a solid tax planning and asset protection background.

The Gateville Law Team is the best equipped to handle your simple to complex real estate transactions. Real estate transactions are most people’s most significant financial investment, which has a substantial impact on one’s individual and family’s death.

Unlike most real estate attorneys, our attorney team has substantial experience in the areas of business structure, joint ventures, and asset protection legal experience achieving over 18 years of experience.

Whether you are purchasing investment or commercial real estate, our real estate team can help you with the following:

• Setting up single or multi-member LLCs and joint ventures to purchase or sell real estate, whether an investment or commercial space

• Review and draft real estate commercial leases and residential leases for investment properties

• Spearhead residential and commercial evictions and provide a one-stop shop for your real estate, tax, estate planning, and asset protection concerns

• Manage and oversee your residential and commercial real estate closings needs

Additionally, our real estate team understands title issues involving heirs and devisees of a decedent that has deceased where probate court normally would be required. There are many instances where we can draft the appropriate legal documents to bypass probate court and save you thousands of dollars in fees and costs.

Furthermore, unprobated estates and property interests are difficult for most real estate attorneys. An unprobated estate is an estate in Illinois that has not gone through the probate court process. Probate is the legal process in Illinois that occurs after someone dies owning real estate or other interests when the title has failed to identify a beneficiary or beneficiaries. The probate court validates who the heirs and legatees are of a decedent’s estate and determines who are the rightful owners and heirs of a decedent’s estate. The probate court also normally appoints an executor or independent administrator to administer one’s estate, pay one’s debts and taxes, and distribute one’s real estate and other interests consistent with Illinois law or their will.

If an estate is unprobated, it means that this process has not yet occurred, or it has not been completed. This can happen because it is not required or an alternative legal strategy is available to bypass probate.

Our real estate, title insurance, and probate experience are vital in dealing with decedent estate issues involving a loved one’s death that normally would require an estate to be opened and probate court initiated.

PARTNER TODAY WITH A KENDALL COUNTY REAL ESTATE LLC ATTORNEY

If you are a landlord, property owner, or real estate investor, working with an Oswego Real Estate LLC Attorney is a smart decision. Gateville Law Firm can assist you with setting up your real estate venture in a cost-effective manner that maximizes your profits and limits your liability issues.

Contact Gateville Law Firm through our online form or call us at 630-780-1034 to set up a phone or initial consultation. We can provide you peace of mind, asset protection, and estate planning combined with your business planning legal concerns.