Correct Business Setup
Hello All
I'm looking for the correct way to structure my business. I'm just starting off as a traditional buy and hold landlord. I currently have a SF rental and will be closing on a 4-unit at the end of Nov.
How should I structure the business to best protect myself?
I currently have an LLC and bank account BUT the LLC doesn't own any property. I prefer to have each property in its own LLC since an LLC is cheap to create and maintain in Michigan relative to its protection.
So...
should I create another LLC and warrenty deed each property to one? or
should I create two new LLC's and deed a property to each new one with my current LLC being the owner of these new ones? This way I only need one bank account.
The problem I'm having in my head is I don't understand how to keep the expenses of each property seperate. So if I did option #2 then wouldn't everything flow through to the top LLC?
I know the BEST way to structure the business is to use land trusts but I'm not ready for that yet. BUT when I am then option #2 would provide an ideal setup for it I think.
Please Help Me!!
If LLCs are cheap to set up and maintain, then I would think you would want each property to be owned by a separate LLC for liability protection purposes (if one entity runs into problems, the others' assets are not at risk as long as run separately), but have a single LLC serve as property manager of all of your properties for your objective of one bank account running all of the businesses.