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Updated over 4 years ago,
Establish LLC for Each Property Purchase?
My wife and I personally purchased a duplex in the Chambersburg, Pennsylvania area last year. We house-hacked while doing an almost complete home renovation in 6 months, moved out, found wonderful tenants to move-in right away, continue to manage the property ourselves, and started up our business as Crystal Clear Properties LLC. We still own the duplex personally, as we have not yet moved it under our LLC; and, we are currently looking at a 7-unit to purchase. Our lawyer recommends creating a new LLC for each property purchase... We like our business name, and so our lawyer suggests that Crystal Clear Properties LLC could act as the property management company since we plan to manage all of our own properties for the time being. My wife and I are asking for others advice on how everyone else structures their business when managing multiple LLC's because we are seeing how things can get complicated very quickly (e.g. separate bank accounts, breaking down expenses, taxes, tracking mileage, etc.). Thank you in advance for taking the time to share your own strategies.