Creating a series LLC

[Robert Washington]

Biggerpockets fam,

I want to create a series LLC to buy property in Reno NV. My intent is to buy one property in NV and more in a different state.

However, I'm curious if it would be better to just create a regular LLC or series LLC?

Thanks for any guidance or tips.

- Rob 

[Nathan Gesner]

For every LLC you create, there are costs for setting it up and maintaining it, separate bank accounts, separate credit cards, separate tax filings, more paperwork, etc. It becomes a nightmare to monitor.

If you feel the need for multiple LLCs, set up a series so the properties are split up but you're not over-complicating your life.

[Bill Schrimpf]

@Robert Washington - What do you hope to gain by running a series LLC? Series are easier than several regular LLC, but it's still more to do than a single LLC.

[Jason Marino]

The benefit of the Series LLC is that, generally, you have all of the benefits and protection of multiple LLCs, with a lower maintenance cost that would be similar to having a single LLC. There is some variation among the different States that offer the Series LLC, but you will likely only being paying for a single registered agent and single annual State compliance (if applicable). I agree with the statement above that maintaining the Series LLC will be easier than having mutiple LLCs, but slightly more complex than having a single LLC.

[Robert Washington]

Quote from @Bill Schrimpf:

@Robert Washington - What do you hope to gain by running a series LLC? Series are easier than several regular LLC, but it's still more to do than a single LLC.

 Buy multiple properties in my investment journey while adding layers of protection to each individual property.

[Robert Washington]

Quote from @Nathan Gesner:

For every LLC you create, there are costs for setting it up and maintaining it, separate bank accounts, separate credit cards, separate tax filings, more paperwork, etc. It becomes a nightmare to monitor.

If you feel the need for multiple LLCs, set up a series so the properties are split up but you're not over-complicating your life.

 Nathan,

Thanks for the reply and I think a series will work for what I'm trying to accomplish.

[Robert Washington]

Quote from @Jason Marino:

The benefit of the Series LLC is that, generally, you have all of the benefits and protection of multiple LLCs, with a lower maintenance cost that would be similar to having a single LLC. There is some variation among the different States that offer the Series LLC, but you will likely only being paying for a single registered agent and single annual State compliance (if applicable). I agree with the statement above that maintaining the Series LLC will be easier than having mutiple LLCs, but slightly more complex than having a single LLC.

 Jason,

Thanks for the feedback! My ultimate goal is have protection layers around each property I buy. I think this will help me accomplish my goals.

[Nate Sanow]

I’ve always heard / been told that even when people have all these different entities, if someone really wants to come after them they can… and will… to me, the best defense is a really good attorney, or two, or 3…. If I have 1 entity or 100, I want someone on my side who is competent and capable of defending me if whatever accusation someone sent my way. 

Just my 2 cents I know it’s a different angle but something I think about.