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Forming real estate sales and property management company in California

Asked by: Charlie - 20 August, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Can a California real estate company be an LLC?
Answered by: Alex Zehn - 23 August, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/28.jpg-7d9906f3bebbbdfc924d6dc4cf7bc094 Charlie,

Yes, you can use an LLC to buy and to manage real estate properties. In fact, LLC is the most popular form of entity that real estate investors and developers use to hold their properties.

Keep in mind that it is recommended to register a separate LLC for each and every property that you purchase, and it is generally recommended to separate each business (such as real estate management company) into its own LLC.

The reason has to do with liability - if one LLC is sued because somebody broke a leg on the property owned by that LLC, other properties are protected from any judgement against the property in question and its owner (the LLC).

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