Hello gang - I have not been on the forum in a while as I have spent the last few months negotiating and working through a purchase of a four unit property in South Jersey. I close on the property this Friday. I will provide a detailed update in few days.
I am looking for a creative LLC name. Should I set up an LLC for each property I own or combine them (I own two now) and looking to buy more probably next year.
I don't like the idea of using my last name in the LLC name but am considering using my initials.
Any thoughts would be greatly appreciated.
Thanks in advance.
I would not use any of your identity, come up with a creative name that means nothing to someone looking for your dirty laundry.
Some on the BP site have pointed out that if you have an LLC for each property, you have the cost to setup, in FL its about 500-600 bucks for each one. Then you need tax returns for each one. Why not buy Umbrella Coverage for your properties, through either auto insurance you have or your primary residence? Each LLC has to have its own tax work and forms, I don't see the value in having 10 properties with 10 LLCs and 10 tax returns, but that is my opinion, and others will do it differently.
You can seach the LLCs in use at sunbiz.org here in the state of florida. Best of luck to you.
Naming it something more generic is probably best. Make sure you can have the property in an LLC if the financing is in your name, some banks won’t like this.
Advice I was given regarding amount of properties per LLC was about 5. If you separate each property into an LLC, you’re gonna have a lot of bank accounts and potential legal fees that may not be necessary.
Not official legal or tax advice
Great points guys. @Jack Bobeck I do have an umbrella policy on the recommendation of my insurance agent who came highly recommended in our local REIA.
Thanks again for the great advice.
@Robert Guilfoyle, Name the LLC the same as the property address. Ex. 123 Main LLC. Use a post office box address for anonymity. You don't need a separate LLC for each property but I recommend a separate bank account for each property. The bank account should be free. That way you can track the income and expenses separately. This will make it easier at tax time and will let you know the profitability of each property. Let me know if I can be of assistance setting up your New Jersey LLC.
I’m not an expert in this by any means but in the research I’ve done it seems best to put each property in a separate LLC. If someone were to be injured on one property they could sue and conceivably reach inside the LLC to take all properties owned by that LLC.
I was gonna mention the same as @Bill Hampton but also in case you want to set things up ahead of time and not worry about the deal falling through and trying to figure out what to do with the tattoo of your failed relationship (read: an LLC in the name of a building you didn't end up purchasing) you can name them more along the lines of "Property 1, Property 2"...if that sounds as boring to you as it does me you could spice it up with "Casa Alpha LLC, Deux Casa LLC" or something of the sort.
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