Best and Easiest business structure

[Andrew P.]

Hi All! What is the easiest way to set up a company that limits liability? There are many different methods and people talk about a lot of different things here. The most common answer is to have a LLC for each house and separate bank account. What if you have 50 houses? Do you have to maintain 50 different bank accounts and file 50 tax returns? One suggestion is a series LLC (such as in Delaware) but NY does not recognize that. We have gone through this website, talked to multiple lawyers and CPAs. The easiest thing to do would be to have one bank account and run everything through there but apparently that would pierce the corporate veil. Anyone have additional thoughts?

[Olia Fogel]

I would definitely recommend looking into a Series LLC, as it has unlimited scalability. Creating new series does not require any additional filings or fees with the state. Having a Series LLC will also not complicate your taxes or banking, as it can still be formed as a single member LLC and can be treated as a disregarded entity for tax purposes.

Regarding it not being "recognized" in NY, not all states allow the in-state formation of Series LLCs, but all states recognize a Series LLC that is validly formed in a state that allows a formation of this type of entity.