Do I need multiple LLCs?

Question

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?

Dave Poeppelmeier · Answer

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.

Amy Kendall · Answer

@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.

Dale Desmond · Answer

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.

Dennis Wayne · Answer

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

Account Closed · Answer

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.

Cal Dunagan · Answer

Hi @Max Bradshaw!Getting a Series LLC would address your concern for your inter-state properties. You can check out the advantages here:

https://www.biggerpockets.com/blog/the-traditional-llc-vs-the-series-llc-which-is-better-for-real-estate-investors

Do I need multiple LLCs?

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