Multiple LLCs - Tax and Liability Structure Questions

[Amy E.]

Am having trouble finding a real estate business attorney in Middle GA.  One who can explain liability exposure to me, not just handle closings.  So if you have a referral, please send it my way.

That said, I want to be prepared with questions once I do find a lawyer in my area. I've got some questions for those that are currently operating multiple LLCs by having one parent LLC that owns multiple child LLCs. The child LLCs own/operate each individual rental property. I only own rentals, so no need to cover flipping at this point. Here are my questions:

1. It's my understanding that the purpose of an LLC is to limit my personal liability. But I manage my properties myself so aren't I still personally liable even if the properties are owned in an LLC? And if I'm still personally liable....what's the point of the LLC? If I am personally liable since I am actively managing the rentals and since it's much easier to get funding without an LLC, am I better off holding properties in my personal name and trying to find the appropriate personal insurance to cover me if?

2. Additionally, since I currently have only one LLC, I collect the rental income and directly pass it to my personal taxes through a K-1. If I continue to manage the properties but the child LLCs own them, and I am not a direct owner of the child LLC (the parent LLC is), then wouldn't I have to pay myself a salary for the property management (paying bills, collecting rent and hiring contractors)?

3. I have a multi-member LLC, and we file a 1065. If I go with multiple LLCs, each would have to file a 1065. Is there anyway to make this less painful by collecting rent in the parent LLC, effectively making the income/expenses $0 for each child LLC? Or would that open the parent LLC up to liability and make the child LLCs useless? I think this may be illegal because each LLC is supposed to have a business purpose and if I did this the only purpose of the child LLC would be to protect me from liability, which I don't think counts as a business purpose, does it?