A type of corporate structure in which the company remains a separate entity from its owners. If a limited liability company is sued, the owners can’t be held personally responsible for the company’s debts. For real estate purposes, setting up an LLC offers legal protections to investors while also providing certain tax benefits.
Example: Brad wants to purchase a rental property as an investment. He establishes a limited liability company to protect his personal assets as a precaution against being sued by one of his tenants