Question on Real Estate Company

[Syed A.]

BP Gurus,

I need your expert advice on forming the company for my rental properties. I am very confused right now. My attorney is telling me that lets open the series LLC and move all the rental properties to that series LLC.

Looks to me Its way too complicated to manage the series LLC for the small investor. I am located in western suburb of Chicago. Here are the key issues i can see in my situation.

ISSUE #1) To provide full asset protection, an Illinois Series LLC must be in strict compliance with state laws that require each cell to maintain separate bank accounts and accounting systems, independent records, operating agreements and rules of operation. If there are several LLCs in the series, this can be a big administrative issue if I have more than 20-30 singe family homes. I need to open 20-30 different bank accounts and, since each is producing separate financial statements, each must have separate accounting. It's not over kill here? what happened once you have 100 homes? This solution is not scalable once we have large number of units. how other people are doing here?

ISSUE #2) I was looking on internet and some states have found single member LLC owners to be personally liable, essentially removing any liability advantage of forming an LLC in the first place. Single Member LLC's, whether series or not, are virtually useless anyway when it comes to asset protection. The single member LLC doesn't get much benefit as per the rules. Other option was that we need to have multiple active members or a very well funded LLC with lots of assets that's not the case for me.

Please let me know your thoughts. how should we form the company to manage rental properties. I already have S-corp for property management work so i do all the regular day to day tasks using that S-Corp. I wants to address 3 major concerns. 1) Liability Protection 2) Future Real Estate Appreciation 3) Tax Savings.

Thanks

Syed