Real Estate Investors Must Protect Their Properties and Personal Assets

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Incorporating or forming a limited liability company (LLC) is a simple means for property owners to guard their assets. Doing so can protect an owner's personal assets if sued by a tenant or involved in a property-related dispute.

As the value of properties increase, many real estate investors use the equity they gain to acquire more properties

Real estate investment and rental property management is a popular means of generating income. However, it's also an easy way to lose everything when your assets aren't properly protected.

Incorporating or forming a limited liability company (LLC) is a simple means for property owners to guard their assets. Doing so can protect an owner's personal assets if sued by a tenant or involved in a property-related dispute. Formal business entities also protect shared business assets from individual lawsuits that can occur when ownership of an income property is shared.

Troy Janisch, marketing director of BizFilings, said real estate investors have more to benefit from having a good business structure -- and more to lose from having a bad one -- than most other businesses.

"As the value of properties increase, many real estate investors use the equity they gain to acquire more properties," said Janisch. "This means that lawsuits that relate to a single property can put several properties at risk, and the owners' personal assets, if the proper business infrastructure hasn't been created."

Janisch said BizFilings offers a free "Business Formation Guide for Realty Investment" to help real estate investors understand the importance of protecting their personal and business assets. Free and easy to use, the guide offers detailed descriptions of each entity option as well as the advantages and disadvantages each entity carries to real estate investors. The guide also provides a side-by-side comparison table outlining the characteristics of sole proprietorships, general partnerships, C Corporations, S Corporations and LLCs. It also contains useful information on forming nonprofit corporations, professional corporations and professional limited liability companies.

The "Business Formation Guide for Realty Investment" can be requested from the BizFilings’ Website (http://www.bizfilings.com/offers.asp). It is available on CD and for immediate download. The CD version uses a combination of multimedia, audio and text to present the information and is Windows (Pentium II or later) and Macintosh (G3 or later) compatible.

About BizFilings

BizFilings is the Internet leader in providing incorporation and related services to business owners. Bizfilings professionally forms corporations, limited liability companies (LLCs), and nonprofits faster than anyone else. Its rush service makes it possible to file a corporation or LLC in as little as 24 hours.

As a company started in 1996 by entrepreneurs seeking online resources to start a business of their own, BizFilings embraces the entrepreneurial spirit. The company has grown rapidly in the past decade, helping over 100,000 domestic and international business owners with their corporation, limited liability company, and nonprofit formation needs. The company is headquartered in Madison, Wisconsin with satellite operations around the country.

BizFilings is a part of Wolters Kluwer, a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2005) of €3.4 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America and Asia Pacific.

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Troy Janisch
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