There’s a 15 lot park about 20 minutes away from one of my existing 100+ lot parks. Does anyone ever just tuck these smaller ones in to the existing LLC as opposed to creating a new one in an effort to streamline things a bit?
Thanks!
Depends on how you want to spread your risk. If there’s any potential legal issue at the 15 space park, would the 100 space park make you a juicier target for a lawsuit?
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Always use a separate LLC for every property
I wouldn’t combine assets at all. It may seem like you are streamlining things but it’s a different community so I would treat it as a separate entity entirely.
I have a different view than the prior comments. Sounds like same market probably same management and same risk profile. You have been here a while and seem to run your businesses prudently. I don’t think a 15 space park is worth an additional administration of a new LLC since you’re already there.
And also, when you want to sell as a package the books will naturally be together (for better or worse).
I have an RV park with a warehouse down the street we keep for repairing park owned RV’s (e.g. AirBnB units) and storing the crap we don’t want on site. Same LLC.
It’s a personal decision though, but I like combining them.
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This may sound like I’m contradicting my earlier post, but I liked jhutson’s post.
The first question has to be: What are YOUR priorities? There are pros and cons to both strategies, but you shouldn’t let the LLC tail determine how to run your business. If common mgmt/bank accounts fits your business goals and risk tolerance, go that way. If your business model includes POH and separate entities for homes and the parking lot (yuck) go that way.
Like guns or bibles, an LLC is a tool, not a magic talisman to ward off evil. Not saying you would treat it that way, but many seem to.