Should I start a LLC for my rentals?
So i currently have 3 rental properties in my name only. I am ion the process of acquiring 3 more.I also plan on expanding as often as the opportunities come about. I am considering starting an LLC for the rental properties I have. My question is should I do a LLC for each one, would i need a separate bank account for each LLC/property, or should I have multiple LLCs own 2 or 3 properties each. I have also considered starting a LLC in the near future that would act as the property management company. Looking for thoughts and ideas that have worked for others in the past.
Thank You
Most Popular Reply
Having an LLC doesn't offer you nearly the liability protection you think....when you are a small time investor, a half decent lawyer will get around your LLC in a heart beat. All they have to prove is that you use some of your personal bank accounts to pay for items used in the LLC ...or some of the payments to the LLC go into your personal accounts and you are sunk. EVERYTHING needs to be separate and strictly accounted for....Plus depending on your state paying for an LLC adds up...like in CA.
In my opinion you are better off having heavy liability insurance coverage, than doing a bunch of LLC when you are a smaller investor. An LLC is a thin veil that will not protect you as a small investor with a small number of properties....