It is important for your legal protection that you place your rental properties in an entity such as a limited liability corporation (“LLC”). For individuals with more than one rental property, a series LLC may be the best option.
A series LLC is an LLC with sub-companies, called “series.” The company agreement of the series LLC allows for the segregation of interests and assets into separate series.
Each series is its own individual cell within the parent LLC. Each series is responsible for its own debts and liabilities. Typically, people with more than one rental property will create a parent LLC and then place each property in its own series. This keeps all the properties in their own separate entities without having to create multiple LLCs. Each series should have its own separate records, company documents, and bank accounts.