Updated over 3 years ago on . Most recent reply
Questions about number of LLC’s
Is it best to make an LLC for each rental, or single family dwelling I plan to own. Or better to have one LLC for all of my rentals I plan on owning.
Most Popular Reply
That is a question of personal preference and your ability to manage the complexity.
On one extreme, you have the challenge of tracking which expense goes with which LLC. You theoretically have more protection...assuming you manage it properly. If you start making mistakes and pay for one property's repairs with the LLC of another property, you have pierced the corporate veil and likely would have your LLCs thrown out if a lawyer tried to get past their protection.
On the other extreme, it doesn't make sense to put all your eggs in one basket. One LLC with lots of assets can be a target.
You missed the "half way" solution. Several properties in each LLC.