Setting up LLCs for your rental portflio

[Uche Abakporo]

Hi all,

Looking for general wisdom and tips for setting up business structures for rentals.

I own a mix of short-term and long-term rentals but the properties were all purchased my name. I've been told to set up an LLC for each property to protect me from liabilities. I am yet to make the changes but I am looking to start the process with LegalZoom. Any advice form veterans on setting up LLCs using LegalZoom? Are there better alternatives out there? Do the LLCs need to be setup in the states/municipalities where the properties are located?

Cheers.

[Chris Seveney]

Quote from @Uche Abakporo:

Hi all,

Looking for general wisdom and tips for setting up business structures for rentals.

I own a mix of short-term and long-term rentals but the properties were all purchased my name. I've been told to set up an LLC for each property to protect me from liabilities. I am yet to make the changes but I am looking to start the process with LegalZoom. Any advice form veterans on setting up LLCs using LegalZoom? Are there better alternatives out there? Do the LLCs need to be setup in the states/municipalities where the properties are located?

Cheers.

 1. Do not use legal zoom

2. If properties are also financed in your name - setting up LLC's will be easily pierced unless you actually sell the property to the LLC (meaning the LLC pays $250,000 for that $250,000 property).

3. Have you looked into umbrella policy for insurance?