MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Don't Set Up Your Rental LLC Without Knowing This

31 Jan 2026 · 1 min

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1:04

Mark Kohler explains why forming an LLC alone won't protect your rental property. You must register it in the property's state, transfer the deed into it, make the lease with the LLC as landlord, and run all money through its bank account. Skip any step and a court can pierce the LLC and hold you personally liable.

Chapters

This is where we see the most mistakes. Rental property LLC even need a little extra attention. Ask yourself is the LLC formed and or registered in the state where your rental property resides? Now, for example, a lot of people are setting up Wyoming LLC because they're so great. Yeah, but is that LLC registered in the state where the rental property is or does it own an LLC in the state where your rental property is? Next, is the property deeded into that ll? Is title held by that LLC for that property? Is the lease in the name of the LLC between the LLC and the tenant? Is the rent paid to the llc? Are the utilities and expenses paid by the llc? See, all of this stuff really matters when you have a rental property and an llc, because if you get into a lawsuit with a tenant or a contractor and you're not doing those things, it's not like you even had an LLC in the first place. Missed several of these issues and in a lawsuit a judge is going to decide that the LLC was never real in practice.