What's the liability benefit?

An LLC limits owner exposure to claims against the rental — slip-and-falls, habitability suits, wrongful-eviction. The shield only works if the LLC is properly formed, capitalized, and operated. Co-mingling funds or skipping formalities lets a plaintiff pierce the veil. Insurance still matters; LLC isn't a substitute.

What's the AB 1482 trade-off?

Single-family / condo AB 1482 exemption requires non-corporate ownership and proper exemption notice. Holding the SFR in an LLC defeats the exemption — the unit becomes subject to AB 1482 rent cap and just-cause. For multi-unit buildings (already covered by AB 1482), LLC ownership doesn't change the rent/just-cause status.

What about the California $800 franchise tax?

California assesses an $800 minimum franchise tax annually on LLCs, plus a gross-receipts fee at higher revenue tiers. The cost is per-LLC. Some owners segregate per-property for asset-protection, accepting the per-LLC tax. Others consolidate.

What about lender requirements?

Most residential conforming loans require personal ownership. Transferring title to an LLC after closing triggers a due-on-sale clause review. Some lenders permit it; many don't. Commercial loans accept LLC borrowers. Consult lender before transferring title.

Do California courts require attorney representation for LLCs?

Yes. California Code of Civil Procedure requires corporations and LLCs to be represented by an attorney in court — including UD trials. Pro-per (self-represented) representation is unavailable to entities. Budget for UD attorney fees if you hold rentals in LLCs.

Liability · AB 1482 · Franchise tax · Lender

LLC or personal name. It's a trade-off, not an obvious win.

LLC = liability shield + AB 1482 exemption loss on SFRs + $800 franchise tax + lender review + mandatory attorney for UDs. Personal name = exposure + simpler taxes + SFR exemption available.

TL;DR

LLC liability shield is real if properly maintained. SFR exemption from AB 1482 lost when LLC owns. $800/yr franchise tax + receipts fee. Lender due-on-sale review required. LLCs must use attorneys in UD. Multi-unit already AB 1482 covered — LLC trade-off cleaner there.

Landlord Insurance
Rent Control

Common questions — LLC vs personal

Liability benefit?

Real if maintained; insurance still needed.

AB 1482 trade-off?

SFR exemption lost; multi-unit unchanged.

$800 franchise tax?

Yes; plus receipts fee at higher revenue.

Lender impact?

Due-on-sale review; commercial accepts.

Attorney for UD?

Required for entities in CA courts.