I read real estate blogs (housing designs really interest me) and one that I read has to do with celebrity realestate. Almost all articles have the line "_____ purchased this house through their _______ LLC."
Now I know what LLC stands for (Limited Liability Company) and as the name states, it limits the liability of the company owner, but why do celebrities and wealthy people purchase houses and properties through these LLC’s and not just outright and "by themselves" like most others do?
What are they limiting their liability from?
tax reasons
protection from loss
ease of transfer
hiding of ownership
The LLC also provides tax benefits to the purchaser. In addition there are multiple reasons why the celebrity would want to have real estate assetts in a name other than his/her own. Since it seems that many of them are being sued for one thing or another fairly regularly, the LLC purchase seems a good idea.
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tax reasons
protection from loss
ease of transfer
hiding of ownership
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Along with tax benefits – it provides some protection of the asset should the celebrity be sued for negligence.
Celebrities have deep pockets. They are a good target for law suits.
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We use them for tax reasons, and we are no celebrities.
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