First SFR closing Feb 13, help understanding LLC structure and taxes

[Andrew Anderson]

Thanks for any advice!!

Very excited to be purchasing my first SFR!, finally got over the analysis hurdle. Currently my atty has two LLCs in parallel one designed to be a holding company for the property and the second as a management company for maintenance, etc. He prefers this for the best protection, I am in Indiana btw. This set up seems to be a bit overzealous for one property but allows for growth in the future. This make the bookkeeping and accounting more complicated.

I am torn, should I keep this extra safe but more complicated set up, OR should I stick to just one LLC to hold and manage the property for simplicity sake. With the ability to upgrade in the future.

Thanks, Andrew

[Nicole Heasley Beitenman]

Disclaimer: I am not an attorney.

I wouldn't have gone with an LLC at all for just one property. I'd just make sure my insurance was rock solid to cover any law suits. But since you already have one, I'd get your CPA on the phone with your attorney and let them hash out how bookkeeping is going to work.