Property Ownership
A Pennsylvania real estate investor who purchases several properties in a LLC (Limited Liability Company) structure benefits primarily from:
ALower property tax rates for LLC-owned real estate
BPersonal liability protection — the investor's personal assets are generally shielded from LLC debts✓ Correct
CAutomatic tax exemption for investment income
DPREC licensing exemption for LLC property management
Explanation
Holding investment properties in an LLC provides liability protection — if a tenant sues or a property has a liability claim, the investor's personal assets are generally shielded (unless personal guarantee or piercing of the corporate veil occurs). LLCs are a common holding vehicle for Pennsylvania investment real estate.
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