My partner and I have a total of 3 rental properties and are looking to add more to our portfolio. We are concerned that with every new LLC we set up for each property we will have to set up a different set of accounting books. Our accountant has indicated to us we will have to have a different set of books for each LLC's, is this the only answer? Currently we have 3 LLC's. Is there a way to put all of these properties in the same set of books even with multiple LLC's? Does anyone have some insight to how they are running their books with multiple passive income LLC's? Should we be putting more properties under the same LLC?
Our concern is that if something bad were to happen to one property and we have multiple properties under that same LLC that we run the risk of one bad egg ruining a whole batch of properties. Am I overthinking this? Any and all insights are greatly appreciated!
I am not an attorney and I do not currently have my rental properties in an LLC. But I have heard of people in Nevada setting up an irrevocable trust and each property is in a separate LLC. And the idea of keeping each separate is important so that if you have an issue with one then the others cannot be pierced. If I were to go done this road then I would certainly make it clear in the paper trial that these are all separate businesses (LLCs). And the way to do that is to have separate bank accounts, statements, etc.. That is my view but take it with a grain of salt since I have not personally done this and I am not an attorney.