Quick LLC tax filing question

[John Morgan]

I formed an LLC for our six properties mid way through 2018. My property manager for my one out of state property wants to know if I will be filing my taxes under my name for 2018 (like they've been doing for the last few years) or my newly created LLC. Does it matter since my LLC is new? Just trying to keep things simple. I just notified them today of the LLC and haven't sent them my W9 form yet. I didn't realize I needed to send them a W9 form until now.

Also, is it ok for my tenants to continue to make out their monthly rent checks to my name, or do they need to fill them out to my LLC? I plan on opening up a separate business banking account to keep everything separated. In the past I combined all my real estate transactions. But now that I've grown to 6 properties I decided to do the LLC and keep everything separate from my personal finances.

Also, I have mortgages on a couple of these properties and didn't notify my bank that I put them under my newly created LLC. I didn't realize I was supposed to when I got the LLC. Is this going to be a problem? I currently don't do an escrow account with them so I assume they won't ever know. But if I decide to sell them before their mortgages are paid off, will this be a problem since the mortgage is under my name vs the LLC?

[Greg Scott]

John:

Following-up on your secondary post.

Nothing is unmanageable here.  Don't panic.  

You can easily move properties in or out of your LLC with a quit claim deed. You may want to have an attorney do one for you but most of them are pretty simple so you could probably do the rest yourself. You can probably find all you need to on your county web site. Key is just to get the property legal description right. (see your old closing docs)

Even after taking properties out of my LLC, I kept the LLCs and just used them to "manage" the properties. I created a little contract between me and the LLC that said they would. That allows you to more easily write of things like office supplies.

Again, I'd consider insurance to be a better line of defense here.  I'd explore an umbrella liability policy which you get as an extension of your personal residence.