Looking to change my business structure (single LLC now)

[Corey Duran]

Currently, I have many properties, all under one LLC roof. I know this is not the move... That is why I am looking to change this. I am curious how I should do this. I have heard of setting up a series LLC. But these are still new and could be rejected by a lender. I have heard about having a parent company with several LLCs below it. This sounds doable. I have even heard about having a Wyoming LLC and getting very complex to have more anonymity. This seems unnecessary currently.

I am looking for more security but with a good balance of ease of use. Making 10 LLCs and bank accounts seems like a lot of work, but I guess I would be willing to do it if someone could give solid advice on how to stay organized. Also, I would like advice on whether I should set up the new LLCs or have an attorney handle that. I'm sure I could figure out how to do it. Is this a good idea? Would an attorney be able to make the LLC more secure from lawsuits? How would I transfer my current properties to the new LLCs? Quitclaim them? I want to keep my current financial position in these properties for tax purposes. I own all of them outright, so it should be slightly more manageable.

Any advice would be greatly appreciated!

[Kerry Baird]

We just discussed this in our real estate meetup. One of the guys' mentors, who has some 700 houses, has all of his Alabama properties in one LLC, and all of his Ohio properties in another LLC.

My structure is very much like you describe: a management LLC that operates the two LLCs, one is a FL LLC for the properties in Florida and the other a TX Series LLC that owns houses in Texas. We do not have WY LLCs, and we'd have to file a foreign business filing if we did.

As it is, the tax returns are expensive, as we need to file taxes at about $1200 per series of the Series LLC, plus the TX and FL and Management LLC. It starts adding up. The goal of the management or Operational LLC is to get me paid a salary, and set up a solo 401k.

I have a business checking account and business credit card for each LLC so we can keep the expenses straight for bookkeeping purposes. Less can actually be more.