Out-of-state LLC for your rental property in California

[Dominique Braxton]

Hello. I live in Los Angeles, and want to buy rental property here. I read that if someone sues you personally and finds that you have interest in an LLC that owns a rental property that person can take your LLC interest. However, some states like Nevada have charging order protection which prohibits someone from taking interest you have in an LLC.

I read an article that recommends to create a NV LLC (or other state with charging order protection), then create a CA LLC owned by the NV LLC, and buy CA rental property under the CA LLC. So, if I am ever sued my assets are protected because the CA LLC owns all the interest in the rental property and the NV LLC owns all the interest in the CA LLC. See article here https://www.incorporationattor...

Looking for reactions, opinions, recommendations.