Do we really own the home?
Yes, buying with Splitlevel means true home ownership via an LLC. Like a true homeowner, your share value increases as the value of the home increases.
What does it mean to own a home as an LLC?
A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. We set you up to own your home as an LLC because it's simple: the LLC (your "business") purchases the home with its own funds, and each member of your group owns a percentage. FYI: 20% of homes in the second home market are LLC owned.
Can we finance our purchase as an LLC?
Yes! Financing an LLC property is simple (another reason why we love LLCs). You can use a HELOC or other lines of credit.
What are the pros of home ownership through an LLC?
In addition to the simplicity described above, LLC's offer:
We all know accidents can happen... LLCs offer owners increased protection, containing liability within the LLC rather than placing blame on individual owners.
Rather than having your name(s) on the public record when you purchase a home, the LLC's name is recorded on the deed, which keeps things private.
Save thousands annually on taxes.
Because an LLC is a business, owners can sell shares to others easily.
What are the cons of home ownership through an LLC?
Creating your own LLC without splitlevel is time intensive and expensive–it involves finding a lawyer, researching regulations, and outlining and revising your agreement. Setting up co-ownership agreements and helping groups manage home sharing is what Splitlevel does, so we can keep it simple and far less expensive.