Purchasing Commercial Title Insurance As An LLC

05/19/2026 10:42 AM Mark Goodman

If you’re looking to start a business or purchase commercial property but want a layer of protection between the business and your personal identity, you may form what’s known as a Limited Liability Company, or LLC. An LLC has some financial, legal and operational advantages compared to just purchasing the commercial property in your name, but it also changes how some aspects of the deal need to be conducted, including securing title insurance. We explain more about the process of obtaining title insurance for your commercial property as an LLC.

Why An LLC For Commercial Property Purchases?

Investors are oftentimes drawn to the idea of purchasing commercial real estate through an LLC because doing so creates a legal separation between the individual and the property. When the property is owned by an LLC, that company becomes the legal owner rather than a named individual. LLCs can also be advantageous for revenue distribution and tax incentives. Moreover, it can be a wonderful structure if you’re purchasing the commercial property with partners or investors, as the LLC framework will lay out ownership percentages, individual responsibilities and decision-making capabilities. This structure may also be more lucrative down the road should one party want out or if the LLC becomes subject to a potential buyout.

However, because you’re getting this extra layer of protection and shielding yourself a bit from personal liability, the process of obtaining title insurance for your LLC-held commercial property changes a little as well. When we’re working with just one individual to secure a title insurance policy, we know who to contact and who is authorized to sign specific forms.

The LLC is a separate entity, meaning we’ll need to research the company and who is authorized to make decisions on its behalf. We’ll likely need to review LLC structural contracts, ownership details and operating agreements to ensure we’re not taking on extra risk because of the unique format. It simply takes a little more work on our end to ensure everything is documented and drafted correctly, but it’s something we do regularly and we’re confident in our ability to develop title policies with specific LLC frameworks in mind.

Researching a property’s title should not take any longer because it is subject to an LLC purchase compared to individual ownership, but drafting the title commitment subject to LLC ownership structures and verifying the financial and identity requirements of all involved parties prior to issuing a title insurance policy may take more time, so it’s imperative that you give yourself enough time do all this prior to closing. We’ll work as quickly as possible during the due diligence stage of your purchase, but know that extra work will likely need to be conducted to verify items because of the unique LLC structure, so give yourself plenty of time ahead of closing. Connect with a title services team early in the process to give yourself the best chance of meeting all deadlines and avoiding any potential pitfalls along the way.

Let us help bring your commercial vision to life, no matter the ownership structure behind the scenes. We have a wealth of experience reviewing documents, connecting with investors and ensuring that everything stays on track as closing draws near, and we can do the same for you and your LLC. For more information on how we can assist with your first or your latest commercial purchase, connect with the team at Commercial Partners today at (612) 337-2470.