Keep LLC or close it.

[Ika Sargeant]

Does it make sense to have multiple homes under one limited Liability corp. or do you need to have more than one LLC to hold the homes? What are the risks if you just have one LLC hold all the houses? I hold three LLCs that hold 5 houses. All homes are rentals. Now I think I should get rid of the two LLCs and just have one but I still think this is a risky move. My main reason is I think paying for annual filing for all three LLCs is unnecessary cost. I also feel I because I know a bit of about rentals and the states laws where these houses are, I have reduced some of the risk. What do you think??

[Mike McCarthy]

I agree with @Jon Reed. Unless you’re slumlording it, or in larger MF properties, the hassle of managing multiple LLCs is usually not worth the risk protection. You do have decent insurance - right?

Of course, this all depends on your risk tolerance, how much equity you have in each property, etc. I might handle a no-mortgage $1M house differently than an 80% leveraged $125K house.