Hi everyone, I've been looking more into taxes. what state did you set up your llc and why? I'm thinking about setting one up in Delaware,Nevada,or Wyoming.

Also, are you set up as an s-corp?

Basically trying to see what would be best for tax purposes.

Thanks.

The LLC is only part of a bigger pictire.....with the LLC for tax planning is the estate and the future growth of the business.

I would recommend, properties 1, 2, and 3 be in a revocable title holding trust A, B and C. Have either an out of state trustee or have the properties in a different state than where you are.

Have your LLC manage these passive holdings - that way you can get a small active income as an employee. Take that money and fund your retirement, have the LLC provide a match. If you need extra income, you are always permitted to take a draw on the property.

Set up an irrevocable living trust as a successor to your LLC. When you are gone this automatically shifts assets to the ones your love or a charity of your choice.

LLC don't protect owner operators too well. But if you force some one trying to suit you with serving papers in multiple states - you are making life hard on them. That only seems fair.

With the properties being in trust - selling subject to without getting loans called is easy as you are selling beneficial interest only. Moreover, that interest is personal property and not real property. SO no foreclosure required by you the seller, only a repo action.

Jeffery sells a course on this that is awesome. If you have questions about it - the author answers his phone.

the better question is where is the best state to live and invest where a lawyer created phony baloney Big Govt Tax avoidance scam is irrelevant to your quality of life and investment plans

My lawyer who is also a NH Judge and is my crew member says LLC here is worthless - I believe him

If you buy Insurance why would you need a LLC too?

A better question is, what do you want your LLC to accomplish?

I discovered banks won't loan to my LLC, despite their assets or their income. They want to loan to the person behind the LLC. And since I don't have a W2 income, they won't loan to me, unless my husband is on the note as well. Even if it's a single-member LLC, and he's not the single member, and we're trying to keep him uninvolved from the rentals.

I was thinking about expanding into a nearby city, so I went to go look at the tax sales and see what came through, and what it sold for. Every time I went, though, it was dominated by someone with an unusual last name. It turned out, they were in the rent-to-own biz. When I got home, I tried looking them up to get an idea of how long they'd been in business, and see what the extent of their holdings were, as best I could figure out. What I didn't expect was that they named their LLC after themselves, and they had over 200 properties in it. O_o I don't want people to see my entire hand without putting in at least some research.

Because an LLC is an "entity", the "entity" can't practice law without a license. I'm fortunate that I have a good relationship with my attorney. I'm also fortunate that I've only actually been in the courtroom three times in 10 years. (I've had plenty of his help drafting documents and getting advice, though.) But other ll's would have problem not being able to represent their own interests, and having to rely on outside help every time they went to court.

In Texas, a single-member LLC is about $325 to register. There are no further costs associated with it. You file two pieces of paper each year to keep it in good standing. One is a form that updates your public information (yes, I'm gonna be the president for the next 5 years, and this is my contact information). The other is a form that explains why you're not paying franchise tax. (Sorry, this LLC made less than $250k last year.) Then you file the rest of your information with your personal federal taxes on the Schedule E. Since Texas has no state income tax, that's it.

If you want to open a bank account for each LLC, that's good. All you do is go to the IRS website, apply for an EIN for banking use, and that's that. Each LLC money bucket is separate from the other LLCs' money buckets... which can be limiting when you're just starting out and you need something major, like a roof. It can also be limiting when you have LLCs A, B, C, D, and E trucking along, and are starting LLC F... but the houses in LLC F aren't bringing in any income yet, but are under renovation and having serious expenditures. If you like to keep your individual LLCs' income and expenses isolated, that stage can be frustrating.

Ray, how does having that structure boost your profits?

Opens things up for OWC when you sell