Do I Need an LLC for my Rental Property? | Mark J Kohler | Tax & Legal Tip

Hi Mark Kohler here with another two-minute tax and legal tip I’d like to talk about the LlC, and a rental property [I] have so many phone [calls] from new Clients around the country that say mark Do I need an lLC for my rental? What should I do do? I need one lLC do I need five LLC’s? What should my structure look like well? That’s a great question let’s talk about it first Let’s talk about the two groups out there now There’s one side of the spectrum that says you should have an lLc for every run well frankly I think that’s overkill it can be a lot [of] cost and maintenance to set up an lLC for every little project now if they’re Worth 500 Grand or a million or you have multiple partners [I] get it But I’d be cautious of [falling] trap to that lLC for every rental strategy on the other extreme [we’ve] got people that say. Oh, just set up [one] lLC, and you can have 25 rentals in one LLC I don’t know if I like that one either you have all your eggs in one basket and if there’s a lawsuit with one property they can get it all the other properties in the LLC now before I give my Recommendation keep in mind one important Factor to an LLc is not just one sheet of paper Click-Click-Click online And you’re done folks you need to have all the pieces and parts an operating agreement Minutes a corporate book a bank account tax Id number if you need to the protection of that LLC When you show [up] in court, you better have all that stuff and we have So many clients that come to us going I set up my lLC on legalzoom, or some website. What do I do next and Folks, we love to clean those up get them organized and get you on a maintenance program it to be [as] little [as] 150 bucks A year just to maintain the LLC in its proper way So think about that in this equation because an LLC is more than just one click of a button [so], what’s my recommendation balance? I think [your] asset protection structure and your lLC’s should grow with you if you get one rental get an LLc Now maybe two and three rentals can go into one LLC I’m okay with that Let’s look at the equity involved let’s make sure the llc’s set up properly in this state where the rental property [is] located not in Wyoming or Nevada or Delaware set up the LLC where the property is and Start by putting your first rental property in there Maybe your second or third, and you start to get four five six or [seven] or ten or fifteen rentals? Then maybe we add a second or a third LLC Maybe even a holding company lLC to hold them all there’s all sorts of different strategies [with] single member LLC’s Multi-member Llc s using Iras and Llc’s [and] even series LLC There’s a little bit more than just again going online and click like click I’ll just do it myself bottom line get an attorney involved it understands taxation Can set up entities in all 50 states and help support you with company maintenance and even be an address for you and make it? Affordable it shouldn’t be thousands and thousands of dollars But set up Llc’s as you grow and as you expand don’t overdo it and set up an elaborate structure Just because you have to rental. We set up entities for 800 bucks in any state within a full attorney support Consultation and paralegals help and do the whole thing give us a call if you’re interested [in] and please make sure that you’re thinking asset protection and Giving the right protection as you grow and not overdoing it. Thanks so much and keep living that American dream Thanks for watching in if you love that video I’ve got a lot more please subscribe to my channel And I shoot weekly videos that can help you in your business personal life and better live your American dream Also check out my newsletter free newsletter every week with glogauer tips strategies tax deadline You’d love it also if you like social Media Please follow me on social Media with some daily tips and it like to connect that way it could be a lot of [fun] but quietly Please check out [my] pack the legal library I have The test videos on these topics and more where I pull out a whiteboard and breaking down hours and hours of helpful information That can better help you [blair]

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