Businesses entities are formed as a means of limiting an individual’s personal liability, which is generally a wise move in the area of rental properties. One potential downside to this, however, is that landlords and property managers may not, by law, represent their own business interests in court. When a business entity is organized (as in an LLC or LLP) or incorporated (as in a C or S corporation), a separate legal entity is formed. While one may represent oneself in court, one cannot represent another individual or entity unless he or she has a license to practice law.
This prohibition may be easy to forget, especially when dealing with a contentious eviction process or suit by a tenant. This is not to say that some jurisdictions don’t overlook this requirement, but the law in Kentucky is clear – separate entities must have separate counsel.
Chris Richardson is an associate in McBrayer’s Louisville office. His practice is concentrated primarily in real estate, where he is experienced in residential and commercial closing transactions, landlord/tenant relations, and mortgage lien enforcement/foreclosure. He can be reached at email@example.com or 502-327-5400, ext. 304.