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The majority of homeowners pur- chase their homes in their own names. Most homeowners are unaware that there is the option of purchasing their home through a Limited Liability Company or LLC. A LLC is a business structure that combines pass-through taxation of a partnership or sole proprietorship with the limited liability of a corpo- ration. LLCs are not corporations. LLCs provide limited liability to owners. Purchasing a home through an LLC is beneficial for at least two rea- sons. First, homeowners maintain privacy because the LLC prevents the buyer’s name from being pub- lished in the public record. Property transfers are recorded and are available to anyone who wishes to look up information on a particular property address. Thus, using an LLC to purchase a home gives the homeowner privacy. Second, purchasing a home through an LLC shields the home- owner from liability in a lawsuit. If a person is injured on a homeowner’s property, the injured party may sue the homeowner directly. Although insurance may cover a certain amount of money, other assets, such as savings, retirement, and home equity may be used to cover the remaining amount of money owed to the injured party. Howev- er, if the home is held in an LLC, then the lawsuit can only name the LLC and only the assets in the LLC can be used to satisfy the amount of money owed in the lawsuit. Subsequently, if a LLC only had a house, then the house would be the only asset that is used to satisfy the judgment of the lawsuit. Additionally, there are other bene- fits of purchasing a home using an LLC. For example, when a property is owned in an LLC, the property taxes are paid through the LLC. Other costs of homeownership can also be funneled through the LLC. It is important to keep in mind that purchasing a home through an LLC will impact your property taxes and future capital gains taxes. Also, each state has different require- ments when forming an LLC. For instance, the State of New Jersey has the requirement that the LLC file an annual report during the anniversary month of the LLC’s incorporation; the filing fee is $50.00. To ensure that the require- ments are met, one should consult a lawyer and a tax advisor before purchasing a home through an LLC. Contact The J. A. Centanni Law Firm, P.C. at 908-753-0153 for more information about purchas- ing a home through an LLC. Jillian A. Centanni, Esq. is the Owner and Founding Member of The J. A. Centanni Law Firm, P.C. Ms. Centanni has a B.S.E. in chem- ical engineering, an M.B.A. and a J.D. She was recently named to the Super Lawyers ® – Rising Star list, a designation given to the top 2.5% of Attorneys licensed in New Jersey who have been practicing law for less than 10 years or are under the age of 40. She is also a Registered Patent Attorney. SHOULD A HOMEOWNER PURCHASE A HOME USING AN LLC? By: Jillian A. Centanni, Esq. 775 Mountain Boulevard, Suite 103 Watchung, New Jersey 07069 Telephone: 908-753-0153 www.jacentannilaw.com jillian@jacentannilaw.com Advocating for families, property owners, creative communities and entrepreneurs. 1 Mountain Blvd. Warren, NJ 07059 rittenhouseagency@allstate.com Call or stop by to see how much you can save. Rittenhouse Agency, LLC 908-754-3263 166233 Call me today to discuss your options. Some people think Allstate only protects your car. Truth is, Allstate can also protect your home or apartment, your boat, motorcycle - even your retirement and your life. And the more of your world you put in Good Hands®, the more you can save. Insurance subject to terms, qualifications and availability. Allstate New Jersey Property and Casualty Insurance Co., Bridgewater, NJ, Allstate New Jersey Insurance Co. Life insurance and annuities issued by Lincoln Benefit Life Company, Lincoln, NE, Allstate Life Insurance Company, Northbrook, IL. In New York, Allstate Life Insurance Company of New York, Hauppauge, NY. Northbrook, IL. © 2016 Allstate Insurance Co. Protect your world Auto • Home • Life • Retirement www.theconnectionsnj.com