Forming LLC's for Separate Properties


#1

When you own several MHP’s, do you guys set-up individual LLC’s for each Mobile Home Park?

Thanks in Advance,

Deborah


#2

Definintely. In fact, you should set up a separate LLC to do Lonnie Deals from the one that actually operates the park. The reason (other than asset protection) is that doing Lonnie Deals is an ‘active’ business, whereas operating the park is ‘passive.’ You should pay your manager, etc. out of your ‘Lonnie LLC’ to insure that any losses are incured in the active LLC which is deductible agains any ordinary W-2 income you have.

-Jefferson-