Yes, it is "best" to have a seperate LLC for each property. The main objective here is obviously to "limit" your exposure to negative legal actions against you personally or against one entity. The simpliest nomenclature to use is the physical address of each property. Although many starting investors in residential properties commonly quit claim their personal interest into an LLC after closing you should be aware of possible consequences. Most residential lenders have a clause in the note to accelerate payoff if they discover that you have quit claim the property into an LLC. The quick fix is to to deed it back into the names(s) when the mortgage was financed. This is a non-issue if you own the property free and clear, or usde non-traditional financing that is less stringent. Moreover, this is less of an issue with commercial notes because they will typically allow you to deed it into your entity prior to closing, provided you provide them with the proper articles of incorporation. It would be wise to consult with a good tax attorney, business attorney and or CPA to make sure that your entities are providing you with the proper legal protection and best tax advantages.
Oct 28, 2012