For my first commercial property, would it be wise to leave it in a living trust or in a LLC?
I plan to run my own business in a separate business LLC and lease this new property that I am purchasing in Texas while living in California
[{"id": "htkkel0", "text": "Really depends on your situation. talk to your CPA and an attorney that specializes in estates and trusts.", "replies": [], "depth": 1}, {"id": "htkt48n", "text": "You will definitely want to speak with you CPA and attorney about it. This is what I have learned from clients, but I am not an attorney and am not giving you legal advice. During the early 2000's my clients purchased their properties in Trusts....many of them now are moving them into LLC's. One of the reasons I have heard of why they are doing this is because a Trust may be easier to pierce than an LLC in case of litigation. Also, if your Trust gets pierced, ALL of the assets within that Trust can be affected, whereas, with an LLC, you usually have 1 LLC per property....therefore only that specific property can be affected by litigation. Verify this information with your attorney.....", "replies": [{"id": "htlsqgs", "text": "Thank you", "replies": [], "depth": 2}], "depth": 1}, {"id": "htm9kao", "text": "Is this an existing business? Investor vs owner occupied are very different \n\nBased on limited facts, LLC. But I\u2019m not your lawyer", "replies": [{"id": "htma3xe", "text": "There isn\u2019t an existing business but we will run a business there.  Thank you", "replies": [], "depth": 2}], "depth": 1}, {"id": "htncq3q", "text": "LLC with a non recourse loan on the property you are bullet proof!", "replies": [{"id": "htnd7ty", "text": "How does non-recourse loan work?", "replies": [{"id": "htng75o", "text": "So there's 2 loan types:\n\nRecourse: It lets the lender go after the debtor's other assets that were not used as loan collateral or to take legal action in case of default in order to pay off the full debt.\n\nNon Recourse: If the borrower defaults, the issuer can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount.\n\nBasically, you are protected as a borrower, the lender can't come after your assets.\n\nAre you getting financing for the property?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]