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Does one need to register for LLC to rent our home or basic business license if sufficient in DC?

Hi, we have been renting our home in DC for the past 2 years and living abroad but we only have a BBL. We don't remember ever registering for LLC and we are trying to figure out if this is a requirement or not. Can one have rental income without being registered as an LLC, provided we declare the income in tex returns of course? We are trying to do this as simply as possible since we don't intend to keep renting the house much longer. Thanks.
  • July 24 2012 - Washington
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Answers (2)

Profile picture for YourBusyLife
If the property is owned individually, and not by an LLC, then you won't need an LLC.  As you state, you do need to register with DC in order to legally rent.  That's the answer with regards to "what DC needs" angle.

But...you may want to speak to your accountant the the other implications, with regards to taxes and such.
  • February 18 2013
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You can keep your rental home without setting up an LLC. The LLC is a method of limiting liability but it has a lot of requirements that musts be met in order to prevent someone for piercing the LLC and coming after your assets. On your taxes it just shows up as ordinary income that can be offset by your expenses. If you want more information on LLC formation I can put you in touch with our companies attorney. 
  • December 02 2012
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