How kany LLC's should one have?

[Corwin Hernandez]

So I have been listening to the Bigger Pockets podcast and have heard a lot about LLC's on there. They haven't exactly gotten into what an LLC does however. What is the purpose of it? I have also heard of different partnerships using different LLC's, what is the purpose of this?

[Jonathan Makovsky]

@Corwin Hernandez 

The LLC serves a few purposes, but I believe the two big ones are:

• It protects your ASSets:
  • One of the primary reasons people set-up corporations are to shield them from liability. So as an example in the event of a lawsuit, the LLC shields liability to just the LLC and does not hold you liable personally
• You do not pay double taxation
  • Different than a "C-Corp", in an LLC the taxes are passed through the corporation (and not taxed on the corporate level) and only taxed to the members.