Separate LLC for each Rental Property

[Char Silk]

Hi! We are purchasing 3 duplexes (right next door to each other), should we have an LLC for each property or will 1 LLC work?

[Michael Plaks]

Quote from @Char Silk:

Hi! We are purchasing 3 duplexes (right next door to each other), should we have an LLC for each property or will 1 LLC work?

Assuming each unit has 4 rooms (bedroom, living, kitchen, bathroom), you need 24 LLCs: 3 duplexes x 2 units x 4 rooms = 24.  :)

On a serious note, however, the only reason for multiple LLCs (or, actually, even for a single one) is legal protection. Our collective opinion about protecting ourselves from legal liability is worth about as much as our collective opinions about protecting ourselves from Covid or from North Korean nukes. Really, only the opinions of competent experts matter, and for LLCs this would be attorneys. I'm not one of them (luckily).

Bad news: attorneys cannot even agree between themselves about the right setup for asset protection, including on LLCs. My recommendation is to find ONE attorney you like and trust and subscribe to hers/his religion, err, views on LLCs. Avoid seeking a second opinion at all costs, as it's virtually guaranteed to contradict the first attorney. And the third opinion (if you really like wasting money) will contradict both the first and the second.

You've been warned. If you want to see the proof - take at least 3 Tylenols and search this site for "LLC insurance asset protection"