One LLC or Multiple LLCs?

[Jill Keller]

Hello,

I have a 3 properties under my personal name that I'm looking to move ownership to an LLC. Should I get 1 LLC per property or one LLC for all 3 properties? I know multiple LLCs would mean more complicated taxes but I'm trying to see what would be logically better from a legal standpoint or if it matters?

Also, does it matter if it is a single-member LLC or multiple (2 person) member LLC?

Thanks!

[Richard Bechtol]

There is generally a lot of information out there about LLC's. I think that they serve an important role in liability protection and can help to protect you. I understand that some investors think you should set one up for each property but it is typically easier to do a Series LLC you are looking to scale your business and acquire additional properties over time.

The benefit of the Series LLC is that, generally, you have all of the benefits and protection of multiple LLCs, with a lower maintenance cost that would be similar to having a single LLC. There is some variation among the different States that offer the Series LLC, but you will likely only being paying for a single registered agent and single annual State compliance (if applicable). Maintaining a Series LLC will be easier than having multiple LLCs, but slightly more complex than having a single LLC.

It does not matter whether this is a single member or multi member situation either.