Creating a LLC for each property?

[David Menapace]

Hello Bigger Pockets Community!

I have my second investment property under contract (a win in itself given this crazy market!). I have a business partner that is also joining me on this adventure. We are now looking to create a LLC for which we will put this property and future properties into. A lawyer provided us with advice to create a separate LLC for each property.

Question to the Bigger Pockets community: Is that what most folks are doing? Are there alternatives? What are the pro's and con's to having an LLC for each property, rather than just one for the portfolio of properties?

All the best and good luck to all!

[Mitchell Zoll]

Each state is different, which is why it is best to discuss your situation with your lawyer. In Texas, LLC's strong protections are in statute and case law. But setting up an LLC isn't enough. It's the way you operate your LLC that can provide a Plaintiff's lawyer with leverage. Simply filing the state records isn't enough.