PA Trust vs. LLC for Real Estate
By Sean Quinlan, Esq. · Updated January 15, 2025
Trusts and LLCs serve different functions. For Pennsylvania rental real estate, the right structure often uses both — the LLC owns the property, the trust owns the LLC.
LLC role
Limits personal liability for tenant claims. Required for serious rental portfolios.
Trust role
Avoids probate on the LLC interest. The LLC operating agreement should permit the trust as a member.
Realty transfer tax
Transferring PA real estate into a wholly owned LLC can trigger PA realty transfer tax unless an exemption applies — coordinate with counsel before recording.
This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.
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