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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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If I form individual LLC's for real estate, What is the big company?

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May 04, 2010
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starstarstarstarstar 		what about getting credit for the new LLC?
by: yb

many ppl advocate this methodology of creating one LLC for each property. However, how do you get the banks to give the new LLC a loan? if you do co-sign the mortgage loan personally then what does that do to the limited liability protection?
Jan 28, 2009
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starstarstarstarstar 		Real Estate Taxes
by: Anonymous

How do you deduct the real estate taxes? On the schedule "c" or schedule "a"?

Answer

For your personal residence, use Schedule A (itemized deductions).

For your investment real estate, use either Schedule C (if you're a single member LLC filing as a disregarded entity), or deduct it on your Form 1065 if your real estate entity is filing as a partnership.

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