Both Nevada and Delaware are great states to incorporate in. They offer the advantages of very protective business laws and favorable state tax laws. One other advantage that both of these states offer is a relatively new form of business organization – a Series LLC.

This type of entity is perfect for your purposes.  In short, a Series LLC is a single LLC that is allowed by law to form sub-LLCs (“series”) without registering them with the state. A Series LLC will allow you to save on all of the hassle and administrative expense of having a separate company for each of your real estate investment and yet it will limit your liability separately for each investment.  Lucky for you, both Texas and Illinois recognize Series LLC and will enforce the limited liability of the Series.

So, what you should do is form a Series LLC in the state of your choice, Delaware or Nevada, and then form a separate Series (sub-LLC) for each of your investments.  Once you form a Series, register it to do business with the state where the property is located – Texas or Illinois and give it a fictitious name. This way you will optimize the advantages of your corporate structure.