September 16, 2016

If I Form Individual LLC’s For Real Estate, What Is The Big Company?

If I was to form an individual LLC for each house I buy, how does it work in the big picture. Is there one company above all the individual LLC’s?

Answer

Delaware (and some other states), have something called a “series LLC”, which is precisely for this purpose.

On the other hand, you can simply be a member of many LLCs.

We have major developer clients who are members of literally hundreds of LLCs. They (and their accountants) kill a lot of trees each year at tax time…..but it does work to keep liability for each property isolated.

It’s no different than owning stock in a whole portfolio of companies.

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