Currently all my props are in a single LLC.

Is there a limit on how many new businesses I can start? Looks like a great potential opportunity to put every property in a separate LLC!

You can set up LLCs in my state for a $65 filing fee with the Secretary of State. As long as you do that and provide a unique name, the sky is the limit.

But practically speaking, each LLC needs it own checking account as well as emergency reserves, savings, and security deposit trust account if you're going to run it properly and not risk making it easy for a lawyer to pierce the veil. So how many sets of books do you want to manage?

Also, to hire an attorney to set up your articles of organization properly, it runs me about $500 per LLC. So... there's that.

I bought a 4-plex once upon a time from a local insurance agent who puts 5 houses in each LLC. Last I hear, he had 24 LLCs.... so... there's that. He also has a staff who can help shuffle papers.

I've honestly become less impressed with the whole LLC concept. If I had to do it all over again, I don't think I'd mess with it. I'd just open a DBA business account and buy a pile of liability insurance. Single member LLCs don't offer a lot of protection from lawsuits. The whole concept of an LLC is each member can only lose up to what they put into that business... but if it's a single member LLC, the only one person ever put anything into it--you. And therefore, you can lose everything that you put into it, which is everything the LLC owns.

I still keep them around since they do offer a thin line of defense as well as an air of official business nature. But I don't kid myself about it being a robust line of defense, which is why I also carry $3 million in liability.

I should have been more clear.

So, if I have 50 properties, I can start 50 new LLC and get $2.5m from this program!!

Plus the new home buyer credit of $25k will increase the value of my 50 properties by $25k/property or a total of $1.25m!

Talk about being dumb! All assets in a single LLC!

I have a friend, Doctor Sid. He owns:

2 single family homes

A 4-plex

A 10 unit

A 5 unit strip mall

An office building 10,000 square feet.

All held in 1 LLC

A female tenant in his 10 unit wanted some midnight action. So she propped open a garage side door for her boyfriend to let himself in. Instead of the BF a rapist let himself into the property and found this girls front door unlocked. He found the tenant asleep, naked and rapped her.

None of these facts were know. Only that someone broke into the building and rapped a unmarried women.

Maybe you don't understand what is proposed. Currently if you start a new corp at a cost of $1,ooo in attorney fees to set it up, you can deduct the whole amount. The maximum deductible in first year is $5,000. The remainder is amortized. She wants to raise the maximum to 50,000.

Remember every LLC now needs to file (and pay for) a BOA or BOCA or whatever it is - anyway, you have to file for a number and tell the government about all the parties involved - to prevent Financial Crimes...

Don't forget the proposed tax on unrealized gain

and taxing long term capital gains (real estate) as ordinary income.

Me? If you will dance in the street to celebrate chopping up babies what else would you do?

BRAD

"If you will dance in the street..."

I have an expensive attorney who looked over my LLC and made comments.

Guess she can charge me even more now and I can write it off.

Also I do not know one person who was legit with the PPP loans.