I have an LLC registered in Utah, and the title to my two rentals (in Utah) are in my LLCs name. I am acquiring another rental in North Carolina and would like to move the Deed and tile of that property to my LLC. Should I create a new LLC in North Carolina, or can I retain my LLC in Utah and consolidate all of my properties in one place?
What are the pros and cons of both?
I recommend doing it if the cost outweighs the benefit. And it usually does in real estate. It keeps liability to the individual property. Rarely do I see it though. Most owners either have no LLC or use one for all their properties.
This is where I would ask my attorney. Who knows what the laws are in NC vs UT, etc. I prefer to pay for that advice rather than make a big legal mistake that might help someone pierce the veil of the LLC.
I would have them under one LLC as there are additional monetary costs to having multiple LLC'S that don't offer a ton of benefit for just a single property. One for each state if you are planning to acquire multiple properties. After you acquire more than 5 I would look at having another
LLC'S don't offer a ton of protection if you on self-managing the property or interacting directly with the tenants.
You should talk to an attorney and accountant as each state is different and they can give you a better idea of what fits your needs and goals of your investments and portfolio.
@Max Bradshaw You will probably want to get a professional's help with this one. I am not familiar with how NC operates, but do you know if your LLC located in Utah is a series LLC? If you are going to hold several properties under that LLC, it would probably be worth converting it to a series LLC and giving you a little added protection. From my limited understanding, I think you would have to create an LLC in NC and then have your LLC in Utah own that LLC. I had a lawyer set mine up for what I felt like was a reasonable price.
You should be using multiple trusts and setting the beneficiary up as your llc . Twice the protection and you don’t need to be burdened with time trouble and expense of creating new llc all the time
Hi @Max Bradshaw !
Getting a Series LLC would address your concern for your inter-state properties. You can check out the advantages here: