LLC for each property but who does the cash flow through?

General Real Estate Investing
1

Hello,
Sorry but I am new to this forum so if it has been asked please point me to that discussion. My partner and I live in Ohio. We currently have six rental properties and plan to continue to buy 20-30 more in the next 7-8 years.

Should we place each property in its own LLC for our protection? If so should we have an S-Corp as the property management company to run our cash through or should we have the rent run through us personally? Any advice would be appreciated. Also if you know a great CPA in central Ohio who has rental properties of their own I am interested in working with them.
Thanks,
Gary

2

John Hyre is a tax attorney, a CPA, and a real estate investor. He only takes real estate investors as clients.

John is based in OH and is an infrequent contributor to these forums.

Here is his website www.realestatetaxlaw.com where you can find his contact information.

What entity structure you need, and how your entity should be taxed depends upon your specific circumstances. Start this conversation with John Hyre and expand it to include both your and your partner’s estate planner.

3

Here are a few good articles on this:

http://www.thinkglink.com/article/2007/05/23/create-llc-for-rental-property

http://www.forbes.com/2009/08/26/rental-property-liability-personal-finance-landlord.html