Do you advise aetting up an LLC for each investment property?

In Buying Property - Asked by Chuck C. - Aug 12, 2011
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Answer(s)

Rick T.
Broker/Agent
Pompano Beach, FL

Yes

Aug 12, 2011
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Montana S.
Broker/Agent
Scarsdale, NY

Absolutely, it will reduce and in some instances absolve you of Liabilities.

Aug 12, 2011
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Chris F.
Broker/Agent
Salem, OR

While the resounding answer will probably be yes, you need to consult both and attorney and a CPA for a comprehensive answer and plan along with a full list of things to consider and an idea or what works best for your situation. Brokers cannot offer legal or tax advice and proper council goes a long way to helping you decide the best solution.

Aug 12, 2011
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gary n.
Broker/Agent
North Salt Lake, UT

Nevada is currently offering a "SERIAL LLC" registration that offers a single entity with multiple "cash flow" centers. No current case law to support LLC protection to multiple properties, but the concept looks good.

Aug 12, 2011
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Wags G.
Property/Asset Manager
Cypress, TX

It depends on the investment structure for operations and sale. If a single group owns mulitple properties and wants the option to use a single accounting and tax system then use a series llc. As the prior poster noted it's available in most states and allows a "main" company and "sub"-companies.
Each assest is held by the sub -company and operates as an independent company with its own operating agreement. Read the articles in the link to get more info.

Aug 13, 2011
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Robert W.
Owner/Investor
Dallas, TX

Yes.
If you go the series LLC route, consider your options when you have to sell or refinance one of the assets down the road. if you don't have separate operating accounts for each asset, you are going to have a hard time pulling one property out of the series. Also, the series LLC will not be a single asset entity, which is a requirement of many lenders.
While you may save some money in organizational costs with the series LLC, you might limit your financing options.

Sep 8, 2011
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