If I have 2 properties being rented out, from my understanding it’s best to have them in two separate LLCs, then have those LLCs under a trust.
The idea is less liability in case a tenant sues. Is having two LLCs, one per property, overkill though, if each property is worth ~$450k (and paid off, no mortgage)?
edit: I have one LLC currently, with the 2 properties and with comprehensive insurance / umbrella policy. I have the second LLC, just haven’t bothered to put the second property into it yet. I’m just wondering if it’s overkill / what some firsthand opinions are.
2 residential properties rented out- do you really need 2 LLCs or is one good enough?
byu/NotBradPitt9 inRealEstate
Posted by NotBradPitt9
3 Comments
I’m no expert, but isn’t smaller assets within the LLC more ideal. Therefore, two separate LLC’s.
From what I hear, not researched, separate LLCs basically separates the properties and assets. So if one LLC is sued, the suit is limited to the whole LLC.
Is avoiding the headache of a second LLC worth the risk of losing both properties?