Business Entities?

[Cody C.]

Hello biggerpockets!

Alyssa Craft and I went to an accountant this morning, who suggested that we do all our business structures as LLCs.

When I asked about Land Trusts, he didn't know anything about them...

He suggested using one LLC for three or four properties, then putting new properties in a different LLC...

I have two questions: How do you currently structure your business?

Should I talk with a different CPA? Or was that good advice?

The Guru's saleswoman this last weekend really suggested land trusts... and this CPA is saying that anyone he has as a client who do real estate investing don't use them...

Thoughts?

THanks,
Cody

[Bill Walston]

Originally posted by Cody Croslow:

Hello biggerpockets!

Alyssa Craft and I went to an accountant this morning, who suggested that we do all our business structures as LLCs. ...

Thoughts?

THanks,
Cody

I agree with Steven Hamilton II, an LLC and Land Trust combo is a beautiful thing ;) I'm not sure that I would look at the "number" of properties in an LLC, but rather the "equity" in the LLC, as that's what really is at risk. For instance, you could have ten properties in an LLC with little to no equity and a single, free and clear property in another LLC. Take a guess as to which is more at risk :)