LLC owning other LLCs bank account best practice

[Allen L.]

Hi all, I was reading a book by Rich Dad Advisor Garrett Sutton and he mentioned opening a Wyoming LLC to hold LLCs operating in other states with weaker LLC protection. I wonder if anyone have done this?

My main question right now is what is the preferred way to treat bank accounts? Best practices says I should keep LLC finance and personal finance separate. In the case of multiple layer LLCs, say I have 4 LLCs:

One Wyoming LLC

Three Kansas LLCs

For paying vendors should I open and use funds from each Kansas LLC individually or can I open one bank account under the Wyoming LLC and use that for property expenses for all three LLCs? Does operating 1 bank account expose me to the "inside attack" from creditor of one LLC able to get assets from other LLCs because they're all owned by Wyoming LLC?

Thanks

[Luciano A.]

@Allen L.

I would say KISS (Keep It Simple Silly). I got started reading all those books that said I need LLCs, Land Trusts, Living Trust, etc. I formed Nevada LLC, Delaware, trusts, etc. I found in the 15+ years of doing RE that a simple strategy for anyone starting out or those who still have mortgages on properties to get good insurance with umbrella policies. Forget about using LLCs especially if you have properties in your personal name. If you have millions in assets (not talking about my West Coast investors which can one house lol) then I would stop reading books and pay for a good RE CPA.

Single-member LLC really doesn't give you a lot of protection. Why do all these LLCs and out-of-state LLCs when starting out. All the filing fees, tracking and the only person it makes sense for is your accountant who will charge you more because of these web of LLCs they have to report.

Again. If you have millions in assets and or someone well known in the community I wouldn't bother with all these strategies instead, I would work on building my portfolio.

Just my 2 cents given. I don't mean any disrespect, just giving you advice I would have given my younger self when I was starting out in RE. 

Best of luck