Better Insurance or More Granular LLC Protection

[John Filippides]

Happy New Year BP Family!

I’m a newer investor, but am quickly looking to add 18 doors to my portfolio in two separate properties (next 30 days).

Before doing that I realized that there are two ways I can go about it - 1. I could purchase them through my existing LLC, or separate it into their own LLC's.

My dilemma, doing my taxes in CA costs me 800 / year per LLC.  Not cheap!  If my strategy is to have 40 doors by year end.  Would it be more wise to structure multiple LLC’s, bite the bullet on taxes (for the protection), or just lump them into one LLC and have individual insurances to cover a single property mishap from affecting the others.

Curious to get everyone’s feedback on the subject!