1, or multiple LLCs?

[Moshe Eisenberg]

Hi guys, I have a question which I think the best answers would be from those who do several flips a year with different partners/investors. I'm working on several rehab flips right now. All in NJ. I have every property under its own LLC for various reasons. My question is if the right way is to have individual LLC's for each project or perhaps have 1 for all. I'll list here some pros & cons of either. Pro individual LLC: Most importantly, cause I have different partners in each; for liability reasons especially when having a few project at the same time & for simplifying bookkeeping. Pro 1 entity for all: While applying for loans I notice that since it's individual entities I'm paying app fees & processing and closing fees per property (it totals to around 2k each). If I had it all under 1 entity I would've saved on that. Another pro 1 entity is the cost of forming the LLC which is a few hundred bucks. Plus in NJ there is a minimum annual tax (I believe it's $500) per LLC. This all adds up to a few grand. I wonder how the power flippers (specifically in nj) do it. I did discuss with @Scott Smith about series LLC. I believe that might be the right answer but I just don't know of anyone in NJ that has their business set up that way. Any advice would be greatly appreciated! Moshe