Creating a proper Biz Entity?

Hi Derek,

Where you’re just starting out, it sounds like a LLC or LLCs would suit you. How I did it was I created a management LLC to manage my properties, and put each property in its own LLC, plus carried great property insurance.

The management LLC managed the tenants and properties — handling finances, repairs, rentals, escrows, evictions — and everything else. The individual LLCs (I named mine after the streets, e.g. “Smith Street, LLC”) was just the deeded owner of the property and did not conduct any business.

Doing it this way protects your personal assets and creates layers of protection. I would strongly recommend speaking with an attorney AND and accountant, however, because every situation is different and what was best for me may not be best for you.

Also be sure to check out our article on starting a real estate holding company. https://fitsmallbusiness.com/start-a-real-estate-holding-company/

Hope this helps! 🙂