Updated over 14 years ago on . Most recent reply
Help with first 27 unit apartment complex
I currently have one LLC for buying and rehabbing single family homes throughout the US. I am in the process of putting in an offer on an apartment complex that is in a different state then my current residence. I'm not sure what to buy this with, and I do not want to use my LLC for flipping residential homes. Just curious what other people recommend or have done in the past for larger buildings like this one. I'm not sure if setting up a separate LLC in the state the complex is in or some sort of trust would be a better choice. Any advice or past experience would be greatly appreciated.
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It sounds a bit like you knew your answer. You didn't want to co-mingle the liability of the commercial asset with the residential assets you have. That is logical.
You can setup an LLC in any state in accordance with their laws, it does not "have" to be in the subject property state. All that is up to you. Having the liability bubble around an apartment complex legally is smart in case someone sues you. Additionally, go talk to your accountant so you understand what your best tax structure is. You could structure the multiple LLC's you now own in a couple different ways and you want that benefit to be maximized.