Purpose of an LLC on multi-family

[Jacob Murry]

Hey Everyone, 

I have a pretty general question about LLC's. I've read several articles weighing the pro's and con's but I'd love to see BP members thoughts on these questions.

I've been advised to open an LLC for each property. (I'm currently a couple of weeks from closing on our first multi-family.) I understand the reason one would need an LLC in each property, otherwise you're not limiting your liability.. From what I've read - I'm pretty certain that is the route I want to go.

My question is - what exactly is the purpose of the LLC? The loan is in my name (and I've been told that since it isn't a commercial loan, it'll be best to stay that way,) and the deed is going to be in my wife and I's name. The only thing the LLC would actually be named on, is the lease agreements, and the bank account, correct? Is that still going to be serving the same purpose of protecting us individually? 

Which leads to my next and final question - Do we need to create our new bank account (for the investment property) in the name of the LLC?

Of course I'm not completely ignorant to these questions and I have an idea.. but if someone with a little more experience could chime in, I'd really appreciate any insight.