[S2000]

Looking for a little advice. I have seen rental properties setup under separate LLCs owned by the same person(s) and seen rental properties setup as one LLC. Any one shed any light advantages/disadvantages?

[seymourct]

My guess is it would be for adding another layer of immunity from liability.

From my understanding a LLC limits the liability to the declared assets of the Limited Liability Company, the actual owner cannot lose his/her shirt, house, home etc.

If the same owner owns more than one rental asset, then it would make sense to limit the liability to each property.

ie: if John Doe sets up SuzyQ LLC and then if SuzyQ LLC owns 2 assets/units, then a major issue happens in one of those units where SuzyQLLC is on hook for more than unitA is insured for or worth, then the other unit can be seized to satisfy the $liability, because it is all owned by the same LLC.

However, if John Doe sets up SuzyQLLC to buy unit A
and the Same John Doe sets up SuzieQLLC to buy unitB.
When a trip and fall happens in unit A that exceeds the insurance on Unit A, only unit A can be seized to satifsy the assets

[AmyBergquist]

I'd agree with seymourct's remarks. Most investors I know set up their multiple investments as separate entities. It costs a little more at the start to establish each LLC, but is worth it from a liability standpoint.

[fxtrader]

Some investors will set up a LLC for each property and have it owned by one LLC which will be a Delaware or Nevada corp., for the tax advantages. It can be costly to have it set up by a lawyer but there are several on line sites that help to make it cost effective.