Posted by John K Haslach, CPA, MST on December 17, 2004 at 15:02:56:
If they are all single member LLC’s, you will not file any additional tax returns. They will all be reported on your Schedule E.
should I create multiple LLC’s on properties - Posted by Conrad Niles
Posted by Conrad Niles on December 17, 2004 at 13:07:03:
I have three commerical properties and am closing on a fourth. All have been purchased under the same LLC. My CPA advises creating a separate LLC for each property to limit exposure. However, I would have to than have separate tax returns and separate audit paperwork on each property and personally, I do not want any further paperwork hassles.
Can someone give me some advise? I have proper commerical property insurance on each piece. Is anyone holding several commercial properties under one LLC?
To a point… - Posted by William Bronchick
Posted by William Bronchick on December 19, 2004 at 17:20:10:
If you can maintain legal “separateness”, it is good to have multiple
entities. If you have one for every property, it’s hard to make the
argument to a judge that your 45 LLCs are all separate (of course, if
each is a commercial or multi-unit building, that’s another story).
Break up the basket, but keep it within reason.
Re: I have three - Posted by Alex F.
Posted by Alex F. on December 19, 2004 at 16:03:21:
I have three LLC, due to the number of properties I own. I live in So Cal so prices high and i need to spread my risk into 3 seperate LLC entities. Remember, paperwork and a few thousand each year is nothing compared to losing everything. If you want to grow & expand you need to “Think big”.
Good luck,
Alex F.
Re: should I create multiple LLC’s on properties - Posted by Dave T
Posted by Dave T on December 18, 2004 at 10:14:23:
In the past, I have been advised to limit the equity in an LLC to a maximum of $250K. If the LLC get sued, my exposure would be limited to the equity in the property held by the LLC. When the equity exceeds $250K, I was told to establish a new LLC for my next acquisition.
This advice was given in the context of my investment focus on single unit rental dwellings.
By the way, if your LLC has paid employees, you will need a separate TIN for the LLC.