LLC for each property?
My CPA suggested forming seperate LLCs for each rental property I purchase. He states that this limits my liability if there is an issue with one property. I have just one property currently, but I plan to purchase another soon. The idea of multiple LLCs seems cumbersome and confusing. I'll have a hard enough time keeping the paperwork straight operating one LLC. I understand his reasoning, but I thought I'd get the experts' opinions here. I do have healthy liability insurance ($1,000,000).
Most Popular Reply
Chris brings up the most important point of having to pay fees & taxes for each LLC. For the best asset and privacy protections, you should consider putting them in a Land Trust, with a Personal Property Trust as the beneficiary. Also using a Roth IRA will give you tax free profits for retirement...
Good luck!