LLC questions! So much info out there, I'm lost.
Hey BP! I am a new REI from Athens, AL with one rental property in NC, and my primary residence which I plan on eventually turning into a rental property as well. I have a few questions I would like to hopefully get clarification on. 1) Is there a special type of LLC I need to open? 2) Can I just have 1 LLC, or do I need to open one for each property? Any other info and tips are welcomed and greatly appreciated. Thanks so much.
Most Popular Reply
There is generally a lot of information out there about LLC's and whether or not they are needed. I think that they serve an important role in liability protection and can help t protect you. I understand that a lot of investors think you should wait to set one up but it is typically easier to do it right from the beginning than to have to go back and set it up afterwards. With that said a Series LLC is good if you are looking to scale your business and acquire additional properties over time.
The benefit of the Series LLC is that, generally, you have all of the benefits and protection of multiple LLCs, with a lower maintenance cost that would be similar to having a single LLC. There is some variation among the different States that offer the Series LLC, but you will likely only being paying for a single registered agent and single annual State compliance (if applicable). Maintaining a Series LLC will be easier than having multiple LLCs, but slightly more complex than having a single LLC.