Limited Liablity Company

[Lee / Lisa Colon]

Do i need a separate LLC for each property i own? and if i do have an LLC for each property, should i open an LLC that owns all the other LLC's

[Cole Bossert]

You don't need a separate LLC for each property, but whether you should depends on your risk tolerance, portfolio size, and management preferences. Some investors do a one LLC per property strategy to limit liability—if someone sues over one property, they can't go after the others. However, this also means multiple bank accounts, tax filings, and admin work, which can be a headache.

If you go that route, some investors use a holding company (often a parent LLC or even a trust) that owns all the separate LLCs. This can provide additional asset protection and streamline management. That said, if you only have a few properties, keeping them under one LLC (or a couple, if you want to separate asset classes or locations) is often more practical. A good attorney or CPA can help you decide the best structure based on your long-term goals.