“Many people today are complaining about the bad economy. However, there are always opportunities for the astute investor. For instance, depressed real estate prices have placed many attractive properties on the market that might not have been there, but for the current economic circumstances.

     Some people are afraid to get involved in real estate investment. “What would happen if someone sues me?” they might say. “I don’t want to lose my home!” Creation of a Subchapter S Corporation or a Limited Liability Company is essential to guard against these possibilities.

     These are business entities that can be created by an individual to own and operate the investment property. There are substantial financial advantages to owning property in this manner and it protects your individual assets, if that “worst case scenario” occurs. Because the Internal Revenue Code allows for the pass-through of the profits, losses and expenses, the tax consequences are no different than that which would have occurred had the property been owned by the individual. On the other hand, the individual owners of the Sub-S Corporation or the LLC cannot be held individually liable for the debts or obligations, unless they have personally guaranteed same.

     As with any major challenge, it is always important to consult with your legal and accounting expert. This is an area that has intricacies that require advice. However, with a little bit of knowledge, you can gain substantial benefits and financial security.”

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The above general information has been provided by Robert A. Gleaner, Esquire, an attorney licensed to practice in New Jersey and Pennsylvania. However, no one can rely on advice from an attorney who has not been retained. In order to be able to rely upon any advice, you need to meet with and retain an attorney, who will be able to give you advice after a full and comprehensive interview. Before you do anything, you should contact an attorney for a full consultation. Feel free to contact Rob at http://www.ragpc.com/.

(Editors note: Business structures such as an LLC or SubS Corp can provide significant protection for real estate investors, but only if used correctly. It is important to retain an attorney to understand the proper way of utilizing an LLC or SubS Corp. If not used correctly, they may not be providing the protection you expect. Also, it is important to consult a qualified accountant or tax attorney on the tax consequences of LLCs and SubS Corps. For example, multiple member LLCs may require a separate tax return and/or K-1, while individual member LLCs may not. Tax laws vary by state and we strongly suggest that proper qualified professionals be consulted when making complex and strategic decisions, such as asset protection. Landlord Business Insider does not provide tax or legal advice!)