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View Full Version : What is the best business structure for a rental property in Texas



dha75455
07-27-2013, 03:02 AM
What is the best business structure for a rental property business in Texas that will protect individual properties?


My family owns about 14 rent houses together , Mom and Dad own 8, my brother and I own 6.

Five properties of my brothers and I are paid for, three of my parents properties are paid for.

We are not flippers, we are long term investors/renters.

We would like to combine the properties that are paid for under a business structure (LLS, SLLC, SCorp) so we can use the collateral to start a retail business under a different LLC.

Everyone will equal partner regardless of contributions.

Average value of each property is about $55,000

Should I

Put them all under one LLC?

Each one under one LLC?

Two properties per LLC?

LLC with subsidiary?

Scorp

Series LLC.

Our goals is to use the collateral to start a medium sized retail store.

Thank you in advance for your help.

I believe in Karma and I will pay your help forward.

Fulcrum
07-27-2013, 02:27 PM
I would recommend putting each property or two into it's own LLC while creating another LLC to manage/oversee the ones holding the property. You should gain some asset protection in the event of a "frivolous" lawsuit and it should make keeping income and expenses from each property separate.

dha75455
07-27-2013, 06:24 PM
That is the conclusion I am coming to...

Segment the properties into individual LLCs with a value of 100k property in each. LLC.

I did not think about a separate LLC to manage the LLCs with actual holding/properties.
Can you point me to any information on using a LLC to Manage Multiple LLC's?

Thank you for your input!!!