So many LLCs - some advice needed
Morning everyone. I am looking for some strategies, ideas and advice on how to structure our partnership with regard to LLCs. My situation is thus: I own 3 small MFH with a partner. Our Operating Agreement is still being flushed out, but is close to being finished. Each time we have purchased a new place, we switch off who goes on the title so that one of us won't bear the debt to income brunt and we can each eventually carry 10 traditional mortgages.
To date we have opened, started and have 1 LLC (a 50/50 split) and have quit claimed the first 2 properties into it. We have not yet filed taxes for 2017 - an accountant is working on that now.
As I went to quit claim the third property, I called the broker to walk through it again with him and he sat on it for a day, talked to some folks and then told me that we were actually hurting ourselves by doing that - b/c now both of us were on the hook for both properties - so we were in fact doing the exact opposite of what we were trying NOT to do. Whoops. Beginner's Luck!
First let me state that I understand some folks will have a separate LLC for each property to limit exposure/liability. I do not *think* we are interested in doing that as it seem cumbersome with regard to banking: 3 accounts per property = 9 bank accounts = too many accounts + the expense of opening LLCs, etc...I'd be willing to hear a counter argument though.
The broker understood that and thus suggested for each of us to open our own (separate) LLCs, then in our Operating Agreement, have the original LLC be "in charge" of the other two. Then...quit claim the houses respectively into our individual LLCs (as title will match the owner).
This seems complicated but do-able. It also seems much less cumbersome and expensive than each property having its own LLC.
I'd love any/all input that you all may have, including if an S-corp or something else may make sense? Thanks.