Asset Protection, Financial and Tax Guidance

[Ram Peruml]

Hello,

I own 2 rental properties in Northern Virginia. Our house hold income is above 295K. I would like to get guidance to protect these assets and future rental properties (buy and hold) as well as get a break from tax.

Would it make sense the follow the below strategy for asset protection and tax benefits? I maybe using wrong terms, please excuse.

Full Disclaimer, I have been watching too many youtube videos and biggerpocket podcasts to come up with the below plan.

1. Create a Wyoming scorp under my name

2. Deed the properties to land trust (one each). Each Land Trust to be unique name not tied to our personal details or address.

3. Create one Virginia LLC per property and assign as the trustee for the respective Land Trusts. Each LLC is owned by Wyoming scorp

4. Create another Virginia LLC for property management owned by Wyoming scorp.

5. Execute lease agreement between property management LLC and virginia LLCs

6. Execute rental agreement between property management LLC and tenants

7. Start paying mortgage from Wyoming scorp derived from the rent.

8. Purchase umbrella policy under Wyoming scorp to cover both properties

9. The residue at the end of the year gets passed to Wyoming scorp which reflects as K1 in my W2.

The below are the current challenges that I am trying to achieve by the above steps:

1. Asset protection (naturally)

2. As of now, the entire rental income is reflecting in my W2. In practice, I am sending all the rental income to mortgage and other expenses. End of the year, I may end up getting 2K total from both properties. This is putting me in the highest tax bracket possible. By using property management LLC for maintenance and using scorp to pay mortgage, I may get just 2K additional income from these properties. This saves me lots of tax by lowering my tax bracket

3. In the future, as I buy additional rental properties (buy and hold), I will have to follow steps 2,3,5,6 & 7.

Question:

1. Can someone (everyone) glance at the above strategy and find any glaring mistakes?

2. Can you recommend any reputable asset protection and taxation services partner?

I am hoping to get this done before the end of the year so I start next year as clean slate.

Thank you reading the long post and appreciate all your input.