Asset Protection using Multiple LLCs - thoughts?
There was a thread from 7 years ago regarding this question of owning separate LLCs (+/-) a holding company for asset protection, and wondered today’s opinions regarding this and had some additional questions. I apologize in advance if I missed a recent post that covered this.
My question has three main aspects:
1) If you own multiple properties under multiple LLCs: If these LLCs are all operating in the precisely same fashion, but all share the same sole owner, won’t an attorney realize this and identify that there is a common entity (“piercing the corporate veil”)?
2) If you keep all properties within a single LLC: If you carry enough insurance to cover the total assets within that LLC (perhaps even 2-2.5x the value of the assets), would this not dissuade a plaintiff from going after these assets ? ("Take the easy money from the insurance company, vs. take the risk and go to court" ?)
3) Does forming another “legal wall” by creating a holding company for multiple LLCs actually offer any extra asset protection? I am no legal expert, but my thought was that once an attorney views the holdings of the holding company, AHA! - lo and behold, there are multiple little LLCs that all operate as one big entity - again "piercing the corporate veil". Likewise, wouldn't this make it very easy for an attorney to identify all properties in one fell swoop?)
Thanks!