Separate LLC vs One LLC

[Alan Davidson]

Trying to find an article about putting each rental property into a separate LLCs or putting a group of rental properties into one LLC.

Just looking for pros/cons of each approach.  I've heard there are differing opinions from a legal and tax side.

I know this has probably been discussed ad nauseum so a link to a forum discussion or a formal article/blog post.

Thanks

[Jay Hinrichs]

IN my mind this all boils down to what kind of assets you have … if your just have vanilla rentals and your not a slumlord what is your risk.. and insurance is far more important than how you hold title.

most people have never been in litigation .. so for some reason they just think hey your sued and going to end up in court.. it is extremely rare for anyone to end up in court.. there just is not that amount of liability renting out little pink houses to renters.. 

but irrevocable trusts I believe offer protection and same with charitable remainder trusts.. but just having LLC no matter where its formed.. the opposing council will sue you personally that I can flat guarantee.. they wont say HEY this guy is smart he has multiple entities so we cant sue him or her.. NO he will sue all the entities and you and usually our wife personally.. then you will spend thousands in motions in liminee and still probably not win since its going to be apparent those are your assets..

Not to mention as @Ned Carey  the cost of maintaining all these correctly becomes a drag on your cash flow.  Where this all makes sense is when you have multi members.. 

When we build our housing subdivisions we cant put all 30 houses in separate LLCs  we have one.... but what we do have is we pay 30k for a 10 year 1 million dollar liability policy so if we get sued we have the first million in legal fees for someone to go through before they get to our regular policy and then there is our general business umbrella for another monsters amount that is very cheap and you don't need to do anything but pay the fees annually..