Liability Protection w/ Land Trust and LLC for Two People

[Phil C.]

Me and one other person will be purchasing an investment property and are not exaclty sure how to properly set up our land trust(s).

This is how I understand it to work:

First we set up a Land Trust (one for each of us), naming a Trustee, maybe 1st Family Trust and 2nd Family Trust - or some other name as long as it does not include our personal names. Then we buy and sell the real estate through the trusts. Finally, we set up an LLC. The beneficiary of all the trusts is the LLC, (which I we each own 50/50) so we have one bank\ account in the name of the LLC and the LLC files it's own tax return, generates a schedule k-1 for our personal returns.

Does this sound correct?

Thank you in advance.