Separate LLCs for Separate Properties?

[b]I own rental property in two different states. How do I go about setting up LLC for those properties? Do I have to set up the LLC in the state where each property is located - or may I set up the LLC for both properties in the state where I reside.

Thanks in advance for your help.[/b]

May I ask, how did you take title to the properties?

Are they in your name or in the LLC name you have?

If you took title of the properties in your personal name, I’d keep them there, with personal liability insurance.

You would be required to establish LLC’s in each state you’re conducting business, and then you’d be required to have a business presence, or be required to have an agent established, for an annual fee of course (or family) to maintain the business presence in that state.

You can do all of this as in individual, especially if it’s currently one or two properties in each state.

Then you’d have to pay income taxes in those states.

Speak with a CPA or Real Estate Attorney for their initial opinions.

I’m sure they’d recommend keeping it at the individual level.

Good Luck!

We took title to both properties as joint tenants. One is in Louisiana, the other is in Nevada. So are you saying it’s best to set up an LLC for each property separately?

Run a search on asset protection and trusts for my take on entities & asset protection. See;action=display;threadid=4036, for example. I think that the asset protection advantages of entities for small real estate investors are greatly over-hyped in general. But I DO think that entities are generally worth using for asset protection alone IF the costs (in time and money) are kept within reason.

If you do choose to put the rentals in LLC’s, it makes sense to have each state’s rentals use an in-state LLC, because you will pay EACH state’s fees, even if you only use one LLC…might as well get what you are paying for. To the question of SHOULD you bother with LLC’s for asset protection on rentals & where no tax benefit is present: My personal opinion is yes IF the costs & complexity are kept in line. But perfectly rational people disagree based on their analysis of the respective benefits & costs - it’s ultimately your call.

John Hyre


Thanks for the info you provided. I have been busy closing 2 deals this week and have not had the time to respond.

Plus helping others get educated and supporting them takes time as well. I love it.

I looked at your site and was impressed with you.

Have an Awesome Day!