Does my LLC name have to be the address of the property?

[Rahnesha White]

Hello, I am a rookie and I'm looking into creating an LLC to purchase out of state properties. I'm considering a name and I read somewhere a while back that your LLC should be your property address? I'm curious if I mistaken that information or it that is correct. Does my LLC have to contain the address of the property or can it just be a random untaken name? Also does or should in contain the words real estate in it or it that not preferred? " ________ real state"

[Charles Carillo]

Quote from @Junior Hall:

Quote from @Charles Carillo:

@Rahnesha White

I would avoid putting the address into the name of the LLC; unless this is for a large property that is a long-term buy and hold. By avoiding to put the address into the name, you are able to use the LLC for multiple properties. Every investor has a different way of handling their LLCs. If your company brand is "Pinnacle Real Estate LLC"; maybe your holding LLC is: "Pinnacle Holdings LLC"

Hi Charles, can you elaborate a little on the holdings LLC? I specifically need to understand if one main difference between the holding company and your regular LLC is that the holding company doesn't actually have properties listed under it but holds most if not all the finances and if so, how would you go about designating your your holdings LLC as your holdings LLC? Hope that makes sense. Thanks.

 I am not an attorney and you should always speak to an attorney and a CPA prior to forming any entity.

Typically, real estate investors have at least 2 LLCs. The first is their brand company that does not hold any properties and holds little money. Then you have 1+ other LLCs that are your holding LLCs. This is where your properties are held. You can have 1 property in every LLC or have 10 in every LLC; it depends on what you and your attorney feel comfortable with. If you are managing your own properties; I would suggest you have another LLC which is your management LLC. This is the company that is on the leases with tenants. If there is an issue; your management company is most likely the one that will be exposed since that really is the one you are conducting business with.

If you are just starting out in rentals; I would setup the holding company first. If you are self managing 5-10+ units, I would probably setup the management LLC. The brand LLC is more important when building a brand (syndications - raising money) etc.