Question on LLC for Investment Properties

[Account Closed]

Hi everyone,

I hear many RE investors who have several LLCs for their properties. Why do they do this and what benefit does this give? 

Let's say, hypothetically, I own 2 rental properties. 1 in PA and 1 in OH. Should I put them under an LLC?

Now let's say, I have 20 rental properties, in PA, OH, NY, FL, AND TX. How would an LLC work in this situation? Do I open a LLC for each property or LLC for each state or just 1 LLC which holds all properties?

This is just a question I had after I researched several investors who do this. 

I want to be prepared when I start investing, which will be very very soon.

My goal in terms of RE, is to Invest and build a portfolio of residential/commercial properties, AND start developing. 

[Scott M.]

The location of the LLC doesn't matter. Technically you are supposed to register your LLC as a foreign entity with each state that you do business in. Each state may call it something different and foreign entity doesn't mean just international, means anywhere outside of that state. This way they know to tax you.