LLC set up for rental property and possible flips.

[Mike Lightcap]

I was wondering if anyone could recommend how I should go about setting up an LLC for a rental property I have. I will also be purchasing more property to hold and also to flip. My wife and I are doing this together with no partners and we live in Philadelphia. I don't know if there is a certain type of LLC that I should set up and also should a set up separate LLC's for the properties that I will be holding and the properties that I will be flipping? I'm new to all this so any feedback will prove helpful. Thanks in advance, Mike

[John Sanderson]

I'm not an expert, but I've been doing some reading(dangerous), but since you're new, I imagine one LLC would do the trick. I've got 3 rentals and no LLCs at the moment(going to change this in 2017), but I would assume 1 LLC would provide enough protection, as long as you manage it correctly. Meaning any expenses on any of your properties, rentals or flips, needs to come from the LLC and not from your personal bank account. There are other components(which I encourage others to elaborate on and/or you to read up on), but the main thing is to absolutely keep the LLC account separate from your personal account(s).