Legal Entities For Out of State

[Account Closed]

I think this topic has been discussed a bit ad nauseam but I couldn't find a thread that dealt with it directly with recent discussions.Following the latest discussions regarding out of state rentals,   I was wondering what everyone is doing with the legal entities with out of state properties.   Sole proprietorship all around?  LLC for each state/city?  

Interested in what the BP community thinks on this topic.

Thanks,
Jeff Smith

[Jay Hinrichs]

@Cara Lonsdale too funny.... that would be an accounting nightmare and expensive as heck you would need a tax return for each LLC.. I have seen attornies try to sell that.. reason they make money.. but in practical execution for most its simply not warrented and total over kill.

@John Spurlock as much as we would like to think LLC isolates the owner from liability that simply is not the case.. if its bad enough to get sued.. your going to get sued personally right along with your LLC.. and you may be right but you will spend thousands on motions in limini ...

LLC's are great for many reasons and I have a bunch of them.. but its all with different partners.. but in a single member LLC its easily pierced. Insurance is mandatory if your going to go in the landlording game.