Financial
Don’t DIY your LLC
Simple structure can backfire if you’re engaged in real business

There are many rules and traps for the unwary in LLC, so if you do something wrong, you may not have that liability protection just when you need it most.
Over the last 20 years, limited liability companies have become the preferred way of doing business for many small and medium-size enterprises. That is primarily due to the fact that LLCs are easier to form than corporations. Unfortunately, that simplicity lulls many people into trying to do it themselves or working with forms provided online. Sure, if your LLC is only going to operate a kid’s lemonade stand for a couple of months over the summer, that might be good enough. But for most people engaged in real businesses with significant risks, it’s not.
A little background may help to explain what I mean. LLCs, like corporations, are mechanisms for sheltering the people that run those businesses from being personally liable for their activities, especially if things go badly. Thoughtful people may ask: why is that? Why shouldn’t you be personally liable for your own actions? The answer is that states have encouraged people to start and run businesses as an engine of growth, but many people are reluctant to expose themselves to personal liability. The catch is that there are many rules and traps for the unwary, so if you do something wrong, you may not have that liability protection just when you need it most. Earlier in my career, I represented many business creditors that were always looking for ways to “pierce that shield” and get through to the owners of businesses for their debts. Here are a few of the basics that you should know to avoid that fate.
LLCs need to have Operating Agreements. Operating Agreements take the place of bylaws and shareholders agreements for corporations. If you’re starting a business by yourself (commonly referred to as a “single-member LLC”), then a streamlined Operating Agreement may be sufficient. If more than one person is involved, it’s not just twice as complicated, it’s a least five times as complicated and the Operating Agreement will be much more complex. It will need to cover things such as how much of the business each person owns, how are profits or losses divided and who gets to vote on what. I’m always surprised by the number of business owners who are involved in significant enterprises that do not have Operating Agreements.
Capital contribution. Is the amount of money that you are investing in your new business adequate for the risks that are going to be assumed? Many people form their LLCs and show little or no investment of personal funds. However, if you’re going to be signing a lease, buying inventory, hiring employees or signing contracts, there needs to be a financial cushion that is proportionate to those liabilities. If there isn’t, your creditors will have little trouble getting to you personally.
Evidence of ownership. Corporations issue stock. LLCs issue membership interests. They are quite similar – written certificates identifying your ownership of all or a portion of the LLC. Come the day that you might want to sell an interest in your business or even the entire business, having membership certificates will be crucial. A business that I represented a few years ago never issued certificates. When we went to sell the business, there was nothing to transfer to the new owners. We had to go back and document all the changes in ownership over a period of 10 years and issue certificates to cover them—just for the purpose of being able to sell the business.
Timely filings with the state in which the LLC was formed. Maryland and Virginia require annual filings. In the District, it’s every two years. If you fail to make this filing and to pay the required fee, then your LLC’s charter will be revoked and your LLC will be gone. You would be wrong if you think this is uncommon. Each state in which I practice revokes thousands of charters every year. It’s why we monitor our clients’ filings closely to avoid revocation.
As complicated as some of this sounds, I have only scratched the surface of these issues in the confines of this article. Please feel free to contact me if you need more specific guidance on any of these topics.
(This column is not intended to provide legal advice, but only general guidance that may or may not be applicable to your specific situation.)
Larry Jacobs has represented many businesses, both large and small. He has also helped hundreds of same-sex couples and LGBT singles in the Washington area protect their assets and loved ones through partnership planning. He is a partner at McMillan Metro, P.C. and has practiced law for 42 years. He is admitted to the bar in Maryland, Virginia and the District of Columbia. Learn more at PartnerPlanning.com.
Real Estate
Introducing Next-Generation Assisted Living & Memory Support.
Now Available in Tysons: Kokua at The Mather
We have good news for those seeking assisted living or memory support for a loved one: a fresh, hospitality-driven approach to care is now available in the heart of Tysons, Virginia. Kokua at The Mather opened in fall 2025 and provides residents with collaborative care as well as everyday possibilities for creativity, purpose, and connection.
For a limited time, Kokua is welcoming new residents with exclusive move-in incentives.
“Kokua is a Hawaiian word meaning ‘To extend help to others without expecting anything in return,’” explains Brandon Davidson, Administrator. “If you’re seeking support for a loved one, Kokua is worth a closer look. We take an individualized approach to care, with evidence-based practices provided by a dedicated, interdisciplinary team.”

LIMITED-TIME OPPORTUNITY
“At Kokua, we focus on the individual. We blend care with our research-driven approach to deliver personalized wellness tailored to residents’ needs and preferences,” says Davidson.
Residents enjoy the freedom to choose from enriching programs, meaningful social opportunities with experiences such as sensory walks, meditation, acupuncture, Reiki, songwriting workshops, poetry readings, Sensory Symphony Swim, and more.
Assisted Living in Ādar
Ādar means “respect”, and Kokua delivers. Comfortable residential living is combined with caring assisted living services, enabling residents to remain as independent as possible. Each one-bedroom apartment home (ranging in size up to nearly 900 square feet) offers generous space and thoughtful design, complemented by assistance with daily living tasks and emergency response systems for peace of mind.
Memory Support in Miran
Miran means “peaceful”—another pillar in the Kokua way of life. Private suites are designed for those with mild to moderate Alzheimer’s disease, dementia, or similar cognitive conditions. “Our person-centered approach embraces individual strengths and needs, with an interdisciplinary team that includes a staff member in attendance 24 hours a day to assist with event reminders and activities of daily living,” says Davidson. “Residents have access to a variety of opportunities to connect, express, and explore their potential through social events, wellness programs, creative arts, and more.”
Kokua offers the next generation of care in these areas, with a commitment to highly personalized service.

INSPIRED AMENITIES & BOUTIQUE SERVICE
Nestled in a lively urban neighborhood, Kokua incorporates biophilic design that brings the outside in to enhance health and wellbeing.
Throughout Kokua, residents enjoy a collection of thoughtfully designed spaces and top-shelf hospitality in an upscale community. Beautifully appointed gathering spaces create flexible opportunities for wellness, connection, and everyday enjoyment. A spacious outdoor terrace, demonstration kitchens, art and music studios, and more are used for an array of programs and are available to residents and their visitors. Multiple restaurants offer chef-prepared cuisine with flexible, open-hour service.
“Here at Kokua, we’re offering the next generation of care in Ādar and Miran, and it’s available to the public for a limited time,” says Davidson. Now is an ideal time to explore the personalized care and quiet luxury that Kokua at The Mather has to offer.
For more information, download a brochure at www.themathertysons.com/kokua. To schedule a visit or for additional details, contact Kokua at [email protected] or (571) 282.3650.
Real Estate
Honey, have we been priced out of gay paradise?
Rehoboth remains more accessible than many queer beach destinations
Let’s set the scene, darlings. It’s a scorching July Saturday. You’ve got a trunk full of rosé, a playlist that slaps harder than a “RuPaul’s Drag Race” elimination, and a group chat blowing up with your people en route to Rehoboth Beach — the Delaware beach town that has been the LGBTQ community’s summer headquarters for decades. Sun, sand, Poodle Beach, drag shows, and the kind of easy, breezy freedom that only comes from being surrounded by your tribe.
Now imagine pulling up to a “FOR SALE” sign on that charming two-bedroom cottage two blocks from the boardwalk — the one you’ve been eyeing for years — and seeing the price tag: $1.97 million. Honey, put the rosé down. We need to talk.
Nation’s Summer Capital Has a Spending Problem
Rehoboth Beach has long worn the nickname “The Nation’s Summer Capital” like a crown, owing to the annual migration of Washingtonians — and increasingly, Philadelphians and New Yorkers — who descend on its 27 miles of Atlantic coastline every summer. For the LGBTQ community in particular, Rehoboth has never been just a beach town. It has been a sanctuary, a second home, a place where you can hold your partner’s hand on the boardwalk without a second thought. But the real estate market? She is not reading the room.
According to Redfin data, the median sale price of a home in Rehoboth Beach recently hit $1.96 million — a jaw-dropping 106% increase year over year, and a figure that sits 127% above the national median. The price per square foot has climbed to $1,160, up nearly 27% in the same period. Gag.
So Who IS Buying Right Now?
Let’s not be dramatic — people are still buying in Rehoboth. They’re just a specific kind of people. According to neighborhood data, the per capita income in Rehoboth Beach runs around $118,239, equating to a household income of nearly $473,000 for a family of four. About a third of the workforce telecommutes, many in high-earning, white-collar professions. And more than 68% of residents hold a college degree, compared to a national average of under 22%.
If you want to buy a median-priced home in Rehoboth today with a standard 25% down payment, you’d need to bring nearly half a million dollars to closing — and then cover about $4,000 a month in ongoing expenses.
Still, the market isn’t quite the frenzy it was at peak pandemic frenzy. Homes are sitting on the market for an average of 88 days as of early 2026 — up significantly from the frantic bidding wars of a few years ago, when a listing might vanish before you could refresh Zillow a second time. Sellers are (slowly) getting the memo that buyers have limits.
Have Your Beach House (and Airbnb It, Too)
Many LGBTQ buyers have discovered a savvy workaround to Rehoboth’s sticker shock: buy a property, rent it during peak season, and let your summer visitors essentially pay your mortgage.
The numbers surprisingly support this strategy. The Rehoboth Beach short-term rental market currently has around 928 active listings, with hosts averaging $400 per night and annual revenues of approximately $39,689. The busiest month, predictably, is July — when guests book an average of 96 days in advance (so yes, those summer reservations your friends keep missing out on are being snapped up in April).
The key is making your property stand out in a crowded market. Properties accommodating eight or more guests dominate the Rehoboth STR market (nearly half of all listings), so that five-bedroom house with a game room suddenly starts to look like a business plan. At the same time – keep in mind that location, location, location honey – that is also so valuable. Even a two-bedroom condo close to the beach will also rent favorably well and get those numbers needed to make the most sense to your pockets.
This method allows you to have a second home, enjoy it, have friends enjoy it, and also helps recoup some of the overhead so the overhead and increase in overall purchase price is a bit more manageable.
What It All Means for Our Community
Rehoboth has always been more than real estate. It is one of the few places on the East Coast where LGBTQ people have, for decades, built an actual physical community — businesses, organizations, gathering spaces, neighborhoods — not just a social scene. CAMP Rehoboth, Poodle Beach, the Blue Moon (which, after some drama, was recently sold to new owners who pledged to keep it a queer-affirming space — phew), and countless gay-owned restaurants and shops form an ecosystem that attracts our community every summer precisely because the roots run deep.
But ecosystems require people — year-round residents, small business owners, artists, service workers — not just wealthy second-home owners. When prices rise to the degree they have in Rehoboth, the people who sustain that community can no longer afford to stay. It’s a pattern playing out in LGBTQ neighborhoods from San Francisco’s Castro to New York’s Chelsea, and it’s worth watching closely here.
The good news? Rehoboth remains more accessible than many comparable queer beach destinations. Provincetown, Mass. — the other iconic LGBTQ beach town on the Eastern seaboard — regularly sees median home prices north of $1.5 million with far less inventory and a significantly smaller footprint.
And Delaware’s tax structure does the community a quiet but important favor: no state sales tax, among the lowest property tax rates in the country, and relatively favorable income tax treatment for retirees. These aren’t glamorous talking points, but they matter when you’re running the numbers on whether your beach house dream can actually pencil out.
The Bottom Line, Babe
Can our community still afford Rehoboth? The honest answer is: it depends on what you mean by Rehoboth.
If you mean a single-family home within walking distance of Poodle Beach with an ocean view and a wraparound porch — prepare to spend north of $1.5 million, need a household income pushing six figures annually, and move fast when something comes to market.
If you mean a condo or townhome in the greater Rehoboth area – or a property you plan to rent out in peak season to offset costs — there are still real pathways in.
And if you mean belonging to a community, showing up every summer, taking up space on that beach, supporting LGBTQ-owned businesses, and making sure Rehoboth’s queer identity doesn’t get washed away by the luxury market tide — well, that part doesn’t have a price tag.
It just requires showing up. So pack the car. Bring the rosé. The beach is still ours.
Have a real estate question or Rehoboth market tip? Reach out to [email protected] for LGBTQ-friendly real estate resources in the Rehoboth area.
Real Estate
The rise of accidental landlords
How changing market conditions are impacting property management
Why are there more “accidental landlords” renting out their properties in the Washington, D.C., metro area?
The answer, according to The New York Times and other sources, is the current state of the real estate market. A growing number of accidental landlords are emerging as homeowners rethink their options in a challenging sales market. Rather than accept lower offers than they feel their properties deserve, many are choosing to rent instead of sell.
This shift reflects both financial caution and changing market dynamics, where holding onto an asset and generating rental income can seem more appealing than locking in a perceived loss.
A Market in Transition
The D.C. housing market remains fundamentally strong, but it has clearly shifted from the frenzied seller’s market of prior years. Inventory has increased significantly, and according to Redfin, active home listings in the Washington, D.C., metro area have increased significantly, with reports indicating a rise of roughly 33% to 50% year-over-year in late 2025 and early 2026.
This surge in inventory, coupled with falling demand, has shifted the market in favor of buyers, with roughly 22% more homes for sale than interested buyers. At the same time, homes are taking longer to sell. Buyers are still active, but they’re more selective, more price-sensitive, and less likely to engage in bidding wars.
This combination of rising inventory and longer selling timelines has created a key tension: sellers are no longer guaranteed the price they want. What’s a homeowner to do? Rent.
Why Homeowners Are Choosing to Rent
Rather than reduce their asking price, many homeowners are choosing to hold onto their properties and rent them out. National data confirms this shift. According to a report from Zillow, the share of rental listings made up of homes that failed to sell has climbed to near-record levels, with these accidental landlords accounting for a growing portion of rental supply. The number of these homeowners nationwide is at a three-year high.
The underlying psychology is simple: most sellers are not under immediate pressure to sell. And instead of accepting what they perceive as a discounted price, they opt to generate rental income and wait for more favorable market conditions.
For many homeowners, renting offers a way to “pause” the sales process without exiting the market entirely.
The Ripple Effect on the Rental Market
This influx of accidental landlords is reshaping the rental landscape. And this could be you!
- This trend is increasing rental supply. When unsold homes are converted into rentals, they add inventory to a market that has already seen new apartment deliveries and multifamily expansion. This is one reason rent growth has cooled in recent months, with national increases slowing to modest levels.
- Additionally, it is changing the type of available rental housing. Accidental landlords are more likely to offer single-family homes, townhouses, or condos; properties that differ from traditional apartment stock. Zillow notes that single-family homes make up the largest share of these rentals now.
For renters in D.C., this means more choices, particularly in neighborhoods where rental inventory was previously limited.
Operational Challenges for Accidental Landlords
While renting may seem like a straightforward fallback strategy, many accidental landlords quickly discover that property management is a complex, operationally intensive business. Some of the most common challenges include:
- Tenant screening and leasing compliance. D.C. has robust tenant protections and rent control regulations, particularly for older multifamily buildings. One wrong step can create legal complications home owners are not prepared for.
- Maintenance and repairs. Deferred maintenance can quickly erode profitability and tenant satisfaction. And tenants do have the power to cut into your monthly profit when certain livability standards are not met.
- Cash flow management. Not all rental income covers mortgage payments, especially for owners with higher interest rates.
- Regulatory compliance. Licensing, inspections, and rent stabilization rules can create administrative burdens.
In short, many homeowners underestimate the complexity involved in the transition from owner-occupant to landlord. What begins as a temporary strategy can evolve into a long-term operational commitment.
Property Management Firms Are Stepping In
As a result, property management companies across the D.C. metro area are seeing increased demand, particularly from first-time landlords. These owners often lack the infrastructure, systems, and expertise required to manage a rental property effectively. Professional management firms provide an array of solutions including marketing and leasing services, tenant screening and placement, rent collection and financial reporting, maintenance coordination, and compliance with D.C.’s evolving regulatory environment. For accidental landlords, outsourcing these functions can turn a reactive decision into a more structured investment strategy.
Green Renting: A Strategic Advantage in D.C.’s Rental Market
One often overlooked opportunity for accidental landlords—especially in Washington, D.C.—is the growing demand for “green renting.”
Energy efficiency is no longer just a lifestyle preference. For many renters, particularly in a high-cost city like D.C., it is a financial decision. Utility costs in the District can be significant, especially during peak summer and winter months. Properties that offer lower monthly energy expenses immediately stand out in a competitive rental market.
Installing solar panels, where feasible, can meaningfully reduce or even offset tenant electricity costs. For renters comparing similar properties, the difference between a standard utility bill and a reduced or stabilized energy cost can be a deciding factor. This is particularly true in D.C., where tenants are often highly-informed, environmentally-conscious, and sensitive to total monthly living expenses, not just base rent.
For landlords, the benefits extend beyond tenant appeal. Solar installations can help reduce vacancy, support longer lease terms, and create a premium perception that differentiates a property from competing listings. In some cases, landlords may also benefit from local incentives, tax credits, or increased property value tied to energy improvements.
In a market where many accidental landlords are competing on similar housing stock—single-family homes, condos, and townhouses—energy efficiency can become a key differentiator. It is not just about sustainability; it is about positioning a property to perform better financially.
A Local Market With Unique Dynamics
Washington, D.C., is a housing market shaped by federal employment, policy changes, and macroeconomic uncertainty. Recent developments, including fluctuations in the federal workforce and return-to-office mandates, have influenced both housing supply and demand. In some cases, these shifts have contributed to increased listings and more cautious buyer behavior. At the same time, D.C.’s high cost of entry continues to support rental demand. This dual dynamic creates ideal conditions for the rise of accidental landlords. Are you ready for this seismic shift?
Scott Bloom is owner and Senior Property Manager of Columbia Property Management.
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