All Forum Posts by: Mark A Powell

The only question you need to ask yourself is how much are you accepting to lose if you have a devastating lawsuit in one of your property.

If you tell me you can afford to lose 10 properties, then by all mean put 10 properties per LLC if you want to save $150 a year.

If you tell me you want to lose the minimum, then one LLC per property is a better choice as your liability will be limited to only that asset.

As other mentioned before, the title holding LLC should be in the state where the property is located. And all these disregarded LLC could be owned by a single holding LLC, usually in WY, that will do all the tax reporting and give you the charging order protection to protect you from outside liability claims.

A lot of good information here, but I'll add one note. Think through the properties per LLC ratio in dollar value, not just an abstract number, as part of your risk management strategy. For example, if I have 1 property per LLC valued at $1MM, or 10 properties in an LLC at $100k each, which is $1MM total, I have the same dollar value at risk in each LLC. If a million dollars isn't going to ruin your day if you lose it, use a higher value per LLC ratio. If you want to be more conservative, I would do a smaller value per LLC, like $300k or $500k. Also, I recommend setting up your holding company in a business friendly state like DE, WY, or NV, and bucket all other LLC's under that. Please note, I'm not an attorney and this is not legal advice. There are many great attorney's listed on BP to support setting these up the right way.

@Mark A Powell I do not set up a separate LLC for each individual property if they are single families. It is a waste of money, and time, especially if you have mortgages on the properties and good insurance. Apartment complexes don't set up an LLC for each individual unit.

Group them together to manage your risk. Maybe 3-5 properties per LLC. Lots of variables to consider.

26 SFS. 1 LLC. Simple is good.

@Mark A Powell see you are in OH. If that is where you invest you should look into forming a series LLC (basically sub llcs under one master llc) which I believe are allowed in OH. I am not licensed in OH but will be glad to get you a referral

I forgot to mention that you should get a holding LLC and put the others under it.

I would put each property under their own LLCs. You will minimize legal risk and if you ever decide to sell you just that specific LLC.

26 SFS. 1 LLC. Simple is good.

My rule of thumb is 3 properties per LLC.