M-MTax
Level 12

Investors & landlords

I agree that commingling is common and needs to be avoided and can also result in personal liability AND ALSO laws re registration of LLCs vary from state to state in terms of filing as some require operating agreements while others don't BUT protective laws do NOT vary from state to state.....provided the LLC is operated properly in accordance with state law and there is no commingling of funds liability is limited to the assets owned by the LLC. They offer just as much protection as an S corp anyway.