LLC Structure & Bank Accounts

[Ross Alcorn]

I own 3 properties all 3 being used for medium term rentals. What the best way to set up the properties to protect us from Liability. I see so much out there and it can be quite confusing at times.

This is my plan but would like some feedback. Have an LLC or S Corp- Holding company w/own bank account. Holding company will own the 3 LLC's with a property sitting in each.

Questions:

1. will the structure above cover us?

2. Can the holding company have separate bank accounts under its EIN number or do the LLC's have to have separate bank accounts under their own individual EIN numbers?

3. Should the holding company be an S corp or LLC??

4. In the event they will not let us quick claim deed the properties out of our personal name into an LLC. How should we proceed to protect ourselves?

Appreciate you guys helping!

[Alex Bar]

Quote from @Ross Alcorn:

I own 3 properties all 3 being used for medium term rentals. What the best way to set up the properties to protect us from Liability. I see so much out there and it can be quite confusing at times.

This is my plan but would like some feedback. Have an LLC or S Corp- Holding company w/own bank account. Holding company will own the 3 LLC's with a property sitting in each.

Questions:

1. will the structure above cover us?

2. Can the holding company have separate bank accounts under its EIN number or do the LLC's have to have separate bank accounts under their own individual EIN numbers?

3. Should the holding company be an S corp or LLC??

4. In the event they will not let us quick claim deed the properties out of our personal name into an LLC. How should we proceed to protect ourselves?

Appreciate you guys helping!

Have you looked into getting umbrella insurance as a first layer of defense to rentals? It will require getting higher coverages on your properties but the cost difference won't be significant.