In that case, if they win the lawsuit, they have claims against his ownership in any LLC you have, whether you have 1 LLC or 100 of them.I was aware of the progress of the lawsuit as my employees were called down to give depositions about their former owner, who was sued for gross negligence.

I personally witnessed a Joint Venture that fell apart because the General Partner (GP) was depositing the Partners money into his own Personal Bank Account.

Look at your risk vs. reward and what safety nets you can put in place to protect yourself (I.e. tenants with garnish-able wages, increased security deposits, etc.).

I don't like the idea of leaving security deposits with them because they don't keep it in a separate account.

Is there any action I can take to make him pay the last month rent or am I stuck with using the security deposit? 

@Jack Knight Aloha , I usually offer to pay the security deposit on their new place and go from there

I know in most instances the landlord would keep the security deposit, but I have people telling me that they are contractually obligated to pay for the whole year.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

They have new builds that opened up and taking earnest money deposits.

My security deposit is pretty high.