BiggerPockets

Hi Rick,

I work for a corp/llc document filing service and have noticed that our real estate investor clients who form multiple LLCs often name each LLC with the address of the specific property, e.g., "123 Whatever Street 15 LLC".

Good luck with your investments.

Sarah
Sr. Business Analyst, Intuit MyCorporation

Thanks for the replies.

I think I got it figured out. I can name my LLC's any name that I want, and just DBA with my county to use for the name on the business cards and advertising.

I wasnt sure at first, but I do believe this is the way to do it.

Have a great one

Rick

LMAO, yeah that could get you in trouble.

Rick

Rick,

I would use one LLC or even a corporation as the manager of the other LLCs that hold the rentals. The LLCs that are formed for the rental properties would be structured as Manager Managed LLCs.

All of your contracts, marketing, business cards, etc. would be in the name of the management LLC/Corp. The names of the LLCs that actually hold the properties will then become irrelevant since the real business activities will occur from the management company. I once had a client walk through a parking lot and name his 15 LLCs after the brands of cars in the lot.

I am just getting more and more confused on the whole idea of an LLC. I have spoken to my attorney and CPA, both give conflicting information.

All I want to do is put rental property in LLC's, and the only thing I am confused on is how to advertise with multiple LLC's.

Example - If I have 10 LLC's with x amount of properties in each one. If I have more then one unit that I need to advertise for and they are in seperate LLC's, how would you advertise, if you dont want to use the LLC's name for each property that you are advertising for.

I thought about just using a DBA in my county and just using that name for all the LLC's, but then that brings up another issue. What if your driving down the road and you hit someone, and all they see is Dos*** Home Buyers and Rentals on the truck, then they find out that it is used for 10 LLC's, to me this leaves the door wide open for all the LLC's to end up in court.

Now another thought I had was to put properties in LLC's and then form LLC and use it for Dos*** Home Buyers and Rentals, this would only be used as a property manager and then I can contract out the labor from my other LLC's to Dos*** Home Buyers and Rentals.

If anyone from Texas has an idea on how it works in this state I would appreciate any help.

Basically I am just trying to figure out how to have business cards, signs, news paper ads, ect. with one name that can be used for all LLC's?

Thanks

Rick

The way our firm has done it is as follows:

- each principal has a SMLLC or LP
- the managing entity is formed b/t all the principals
- Single asset LLCs are created for each property / transaction with the managing entity as the General Partner

Hello all, I'm new here and this is my first post. Lots of great information here.

I spoke to a tax specialist yesterday about this subject. She instructed my wife and I to create an LLC that would be used for advertising, business cards, and all that stuff. She then instructed us to create an LP for each property that we aquire naming the LP's the address of the property they will be for. The Partners of the LP would be my Wife and I holding 99% ownership, and the LLC holding 1% ownership. I thought this would be a tax nightmare, but she explained it that each LP would generate a K1 for my wife and I, as well as the LLC, then the LLC would also generate a K1. By doing this, I would limit the liability of each property, and be able to use one business name for advertising purposes.

I'd like to hear some of your opinions on this strategy. Is it overkill? Is it realistic?

Tony,

Unless you're planning on having a very small portfolio, I would not create a separate LP for each property. To be a legal entity that will stand up to legal scrutiny, each entity should have its own checkbook, its own accounting, its own tax return, etc. The fact that the profit or loss goes to your personal return does not reduce the complexity. How would you like to have 50 checkbooks to keep? 50 LPs to set up? 50 tax returns to prepare (or pay to be prepared)?

Mike

Hello Rick,

I was watching the Food Network the other day and found the Pringle got its name by its founders opening a phone book and reviewing the different street names. You should have tons of names at your disposal through this method.

Best of luck!