LLC structure in Michigan, juggling the bank accounts

[Keri Middaugh]

Hello, everyone, my question is about how to structure my rentals and flips in 1, 2, or more LLCs.  I've perused the forums and haven't quite found what I'm looking for.  Ideally, I'd have a simple system that does not involve entities within entities or multiple bank accounts.

Also, what are your thoughts about PO box vs. UPS store box?

I've gotten some counsel on these items from 1 person, but I wanted to see what others have experienced.

Thank you,

Keri 

(flipper and holder in SE Michigan)

[Michael G.]

Solid asset protection will require segration of assets and multiple entitites, independently of any insurance protection. At the very least, rentals must be in seperate entity from flips due to different tax treatment, and ideally each property should be in a seperately entity to ensure your exposure is limited to that single property. 

A typical structure would be a holding LLC that contains your other property LLCs plus your management LLC and development LLC. Series LLC may make the process a little easier, but that is very dependent on your state law. Each LLC will require it's own bank account less you risk losing your protection.

Asset protection through insurance alone is very high risk.

Read on and off this site, see a lawyer who SPECIALIZES in this in your state, and be prepared for complexity.