It really depend upon more facts. LLC's can be a great tool for property ownership. In fact, they are the entity that I usually recommend. However, they are not recommended in all circumstances.
Determining factors include ownership structure, growth plan, tax structure of owners, and management structure.
It's important to remember that the IRS does not recognize LLC's. LLC's are either treated as sole proprietorships, partnerships, c-corporations, or s-corporations. If the LLC has two or more members, then the IRS will default the LLC to a partnership. If the LLC has only member (husband and wife count as one member), then the IRS will default the LLC to a sole proprietorship. However, you may make an election to be taxed as a corporation or s-corporation. The tax situation has absolutely no effect upon the limited liability protection of an LLC.
You should contact an attorney to discuss your particular situation so that you can get the entity suited for you.
The above statements are provided as general information and not intended as legal advice. Each matter has its own set of unique circumstances that cannot be adequately addressed without consultation. You are strongly advised to hire an attorney licensed to practice law in your state to represent you.
LLC's have many benefits for property ownership, but to me the determining factor is your federal income tax situation. You need to consult with a tax attorney or tax CPA to determine the type of entity you should use to own the properties. Another alternative is a Series LLC.
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It depends on your individual situation, and only an attorney in private consultation can ascertain all the facts and give you a firm answer.
You could consider Corporations instead, or even multiple entities. If each house was a separate LLC or Corp, then any suit against one property would insulate the others from being captured to settle claims. etc. See an attorney and do it right, you are risking a sizable amount of money.
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If you do use an LLC for "managing" the rentals, consider a few things:
1. You must title the property and the leases in the name of the LLC
2. The LLC will protect you from liability, but not the properties themselves. You might consider multiple LLCs to protect one asset from the other.
3. You must have separate accounting and bank accounts for each LLC for it all to hold up.
4. Consider a series LLC, depending on which state you live.