[OddGod]

My parents are helping me purchase a new home and I am going to have a couple roommates. We were going to write up a rental agreement just to protect ourselves but friends of my folks say an LLC might be useful. I am not familiar with it at all or what it's benefit would be beyond a Rental Agreement cause it seems to cover what I need. Is there any reason to go beyond a rental agreement? They are just staying with me and throwing in about $300 a month until they find their own place.

Thanks in advance!

[ScottGem]

In your case I wouldn't bother with an LLC. If you were buying a multi-dwelling unit and renting out units, I would agree. But just for having roomates in your home, its not necessary.

If you were to do this, you would have to purchase the house through the LLC which would make it commercial, not residential property. That might go afoul of zoning laws and has tax implications when you go to sell.

Just write up a lease between you and the roomies who are your tenants.

[Fr_Chuck]

First a LLC has nothing to do with a lease or rental agreement, You always need a rental agreement, and you need to know the laws about how to evict.

A LLC is a form of corporation and is used to protect your personal earnings and personal property from a law suit if your business would have a law suit against it, and protects your business property from personal suits ** ( very general idea) and are sometimes done for tax reasons also.