Is an LLC required to use Joynt?
You do not need an LLC to get started. You can plan with your group, compare properties, and use Joynt’s free manage tools without forming one. Joynt Pro needs an LLC. The LLC holds the property, each owner is a member, and the Operating Agreement documents their share.
With the free version you can start managing right away if you already have a co-owned property. Just sign up and start exploring our manage potion of the site.
Once you have a property, the right ownership structure will depend on the property, financing, intended use, and the needs of your group. Two common options are:
- Limited Liability Company (LLC): The LLC holds title to the property, and each owner has a membership interest in the LLC. Joynt’s Operating Agreement establishes the rules for ownership, financial responsibilities, decision-making, property use, changes in ownership, and what happens when someone wants to leave.
- Tenancy in Common (TIC): Each owner holds a direct percentage interest in the property. Joynt’s TIC Agreement puts the group’s responsibilities, rights, decision-making process, financial arrangements, property use, and exit procedures in writing.
An LLC can provide valuable structure and may offer some liability protection, but it is not automatically the right choice for every property. It also does not protect owners from every type of personal liability, including obligations they personally guarantee.
Your financing can play an important role in this decision. Some residential lenders require the individual borrowers to hold title personally and may restrict transferring the property into an LLC after closing. Before selecting or changing your ownership structure, confirm what is permitted with your lender, title or escrow professional, tax advisor, and attorney.
Joynt helps your group understand the available options and put the appropriate agreement and management structure in place for the way you choose to own.
