a foreigner corporation (since I am a foreigner) so it does not become US property for estate tax purposes as holds share of a foreign corporation. All of that the lawyer that represented me explained. However, I want to buy two more properties and it does not make sense to me keep opening LLCs for each of them and then opening bank accounts for each of them.They are one bedroom condos in NY and I think it must exist a better structure for me to keep buying but not having to every time opening a newLLC (or corp)and opening a new bank account for each. I cant imagine that if I want to buy 20 more units to rent I would have to create 20 more bank accounts for each, 20 more corps for each ! Does not make sense although thats what the attorney I had say. Any advice would be greatly appreciated
Well, that is probably the best strategy to insulate each individual asset. The other option is to hold more than one property under each entity. If a legal action ensues against that entity and a judgment is obtained it attaches to ALL assets of the entity. So presently where you only have the one you would have more than one and all of them would therefore be exposed.
You would reach out to several lawyers in private and get a sense for what they recommend. You may come to realize that your present attorney is actually advising the proper way. Most of us here, including myself, offer a free phone consult.
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Often people want a seperate company for each property to protect the others in case of a law suit or financial problems.
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Mr. Rothstein and Mr. Natoli have given you good advice. You should hire Mr. Natoli.
Set up a holding company structure so that there is one holding company (parent) and each property would be held in individual LLC (to minimize risk - still best way to go). have no bank accounts at all for the subsidiary LLC's...just for the parent company. Then enter into a standard property management & administration agreement that each subsidiary LLC would execute acknowledging the parent company as its agent for collection of all rents and other issues on behalf of each LLC. The agreement formality is to avoid challenges (piercing the corporate veil as is commonly referred to) from subsidiary creditors if a claim occurred at one property.
My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained.