Put your Lake of the Ozarks condo into a LLC

Why should you put your Lake of the Ozarks property in a Limited Liability Company?  Mainly because as the name implies, it limits your liability. Putting your property in a limited liability company (LLC) protects your personal assets and limits your personal liability.  This is especially true if you are going to rent out your condo at the Lake of the Ozarks. 

LLCs have tax advantages as well. Because an LLC is a pass-through entity, it is not subject to capital gains tax at the corporate level. As the owner of an LLC, any profit from the sale of a property would be passed to you. You would pay on your share. And, if you are the only member of the LLC (or you and your spouse), the LLC need not file a tax return. A Limited Liability Company gives you limited liability protection and you pass through all profits and losses to your 1040 tax return.

You should form a seperate LLC for each property to further limit liability.  Say you had a mold problem in one of your rental condos, even if you have liability insurance for the rental condo, the coverage may be limited or non-existent for the mold problem, or the liability-insurance carrier may go out of business.  These types of issues are rare at the Lake of the Ozarks, but better to be prepared than sorry. 

If you have any questions buying or selling vacation condos or Lake of the Ozarks real estate, you can always contact The Lake Select Group at 573-302-2320 or e-mail us for a fast response. 

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