Transferring Funds between LLC’s

[Chris Koetsier]

Hi fellow investors,

I would like to better understand the risk of piercing the corporate veil between multiple LLC's. I have 4 separate LLC's, 3 are single member and the fourth is a 50/50 partnership with my sister. The first 3 have residential properties in each and the 4th has a storage facility. The first 5 properties were purchased in my personal name and later transferred into a newly formed LLC. I then raised a mortgage within the LLC's name with myself as surety and the bank paid the funds directly into a separate 2nd LLC that I used to purchase more properties. I then raised another mortgage on the 2nd LLC properties with the funds deposited into the same 2nd LLC. I then transferred some of funds to the 3rd and 4th LLC to use as deposits to purchase additional properties. Each of the LLCS's have there own separate bank accounts. Day to day operations are kept entirely separate and mortgage payments are made from the LLC's that own the notes and properties however as can been seen there have been a number of transfers between the separate LLC accounts. There's have also been a few transfers (not payments) between my personal bank account and the LLCS or between LLCS to manage cash flow. Does this put me at risk of piercing the corporate veil between the LLC's and myself, and if so, what can be done to put the protection in place? I have documented all transfers in a memorandum but as one for all LLCS's.