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LLC (by Marcia [WI]) Jun 9, 2021 9:11 PM
       LLC (by Robert J [CA]) Jun 9, 2021 9:36 PM
       LLC (by Ken [NY]) Jun 9, 2021 11:11 PM
       LLC (by Mike [PA]) Jun 10, 2021 11:06 AM
       LLC (by Deanna [TX]) Jun 10, 2021 2:30 PM
       LLC (by Barb [MO]) Jun 10, 2021 4:42 PM
       LLC (by Landlord ofthe Flies [TX]) Jun 11, 2021 2:04 PM

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LLC (by Marcia [WI]) Posted on: Jun 9, 2021 9:11 PM

How many landlords on this forum have an LLC? Are there tax benefits? How easy or how difficult is it to set up?

Any advice is appreciated. Thanks --108.34.xx.x

LLC (by Robert J [CA]) Posted on: Jun 9, 2021 9:36 PM

Like most everything, an LLC requires some extra work. Done right it can offer an extra layer of protection. Done wrong it can expose all assets (property's) in an LLC for the taking. Instead of having a tenants lawyer go after your single property, they may go after all of the holdings of the LLC.

Most landlords won't go thru the expense of having 1 LLC per property.

You will need to consult with an expert attorney dealing in Trusts, LLC's, Probate and Wills. And a CPA who dealing with real estate and corporate taxes.

LLC (by Ken [NY]) Posted on: Jun 9, 2021 11:11 PM

I have several,rentals and flips. I havent bought a house in my personal name since 1998

LLC (by Mike [PA]) Posted on: Jun 10, 2021 11:06 AM

I existed before LLCs.

Imo over rated form of protection.

Also more costly for setting up and getting financing.

Bump up your liability insurance to a few $M.

Much easier and gives same protection.

LLC (by Deanna [TX]) Posted on: Jun 10, 2021 2:30 PM

I have five single-member LLCs at the moment. The hardest part is keeping the money buckets separate, because they all have their own checking accounts, etc.

In TX, it costs $325 to file. To keep it in good standing, I need to file two pieces of paper each year. One updates my public information; the other explains why I'm not paying franchise tax. (Receipts less than $250k for one entity.) Other than that, my federal taxes for the biz are Schedule E with my personal taxes.

The only time I mix them up is on my website. In theory, each of them ought to have their own totally-independent website... but my market is so small and isolated, and my turnovers so few, that I just run one for everything. Also, they all feed to the same PO Box and phone number. In an ideal world with more volume, they should each have their own to keep them from touching.

LLC (by Barb [MO]) Posted on: Jun 10, 2021 4:42 PM

Deanna -

You actually need a 6th LLC. One to be the property management company, and the other 5 to own the properties. Then you set up an agreement between #6 and the other five to manage for a fee for the overhead.

As for me, I have the rentals in a LLC because originally Mom was my business partner. SHE (or her new husband then) wanted the LLC to keep him out of it. Now it is just my hubby and me, but at the time, it was a good idea.

Meanwhile, my estate lawyer liked it for estate planning purposes.

LLC (by Landlord ofthe Flies [TX]) Posted on: Jun 11, 2021 2:04 PM

If all the LLCs are owned by you, then what good is having a management LLC? They can sue you as owner LLC and management LLC. I just keep all on one LLC and have a big fat umbrella liability policy. With several LLCs, you have to get individual insurance policies and can't take advantage of bulk discounts on certain purchases like insurance. I'd feel safer spending the extra wasted on multiple LLCs on a larger liability policy.

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