How Many LLCs Should I Form for My Properties? (2019)


hello hello everyone Taylor Mathis here
the KEYTLaw girl marketing director and legal assistant at KEYTlaw. Right now
I’m going to talk to you guys about how many LLC’s you should form if you have
multiple properties so stay tuned! But really fast to give this video a like be
sure to comment with any questions that you guys have and subscribe to our
channel for more videos like this one we have upload new content every single
week to assist with your legal needs. So if you own multiple investment
properties should you put all of their properties into one LLC or should you
put each property in just separate LLC’s? The answer to the question is usually
every investment property should be owned by a separate limited liability
company that owns only one property and that is not engaged in any other
business activities the reason is simple to maximize asset protection. So asset
protection rule 1 buy as much insurance as you can afford to insure all your
LLC’s real estate and business activity make sure you have written proof of
insurance showing that your LLC is named an insurer if you transfer real estate
property to your LLC but do not obtain insurance the emini LLC as an insured
the insurance company will probably deny coverage. asset protection rule number 2
hold title to investment real estate through a limited liability company most
real estate investors know that the reason to form an LLC in to transfer
investment real estate to the LLC is to reduce or eliminate the risk that the
investor may lose his or her life savings because of a disaster with the
property, Asset protection rule number 3 diversify your assets.
The old adage don’t put all of your eggs in one basket applies to real estate
investments just like it does to any type of investment if you’ve satisfied
asset affection rule number two and create a
single LLC to hold title to your three investment properties and a disaster
occurs on one of the properties the creditor could reach all of the equity
in all the assets owned by the limited liability company consider the one-time
cost to form an LLC is an alternative form of insurance that you should not go
without. The cost to form an LLC is peanuts compared to the amount you may
invest in property coupled with the property’s appreciation
in value over time. So there it is if you have multiple properties it is
definitely a good idea to put each of those properties into their own separate
LLC’s to maximize asset protection while you’re here don’t forget to like this
video comment if you have any questions and of course subscribe to our channel
for more videos!

3 comments

  • Will you put your real estate properties into multiple LLCs to maximize asset protection?

  • Very educational

  • What are tax implications of putting the just the property in a separate LLC from the property mgt (financial portion) of the LLC? I'm guessing you wouldn't be able to lower the tax liability by claiming depreciation since the LLCs would be separate. Is that correct or is there something I'm missing here?

    To rephrase: On the TAX side of things, would it be better to put everything into 1 LLC or separate the asset from the financial portion?

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