Wyoming LLC formation??

[Account Closed]

So I know I need to establish an LLC to protect my families assets, but I'm a bit confused. Seeing folks setting up a holding company, Master LLC and sub LLC's below that? I know I'm not using the correct terminology, sorry. Can someone please explain why so many LLC's are needed? Do I need a separate LLC for each deal I do or just each category of deals ie: rentals, Brrrr, fix and flip, PML? And why do I hear so many people pushing setup in Wyoming? Can I do business anywhere if my business entities are set up in Wyoming? Do I have to file corporate taxes in WY and personal in TX? I'm so confused, Help!!

[Jason Marino]

Hi Robyn,

What you are speaking about is a Hub and spoke structure. This is a common structure for real estate investors that have multiple assets. The rationale for this structure is to try and isolate all of the assets into different compartments for limited liability purposes. This can help avoid a lawsuit that involves a single asset extending to other assets that are not part of the lawsuit. With respect to a Wyoming LLC, many people use Wyoming for a Hub LLC or in situations where the LLC not doing business in any specific State. Wyoming LLCs offer very good asset protection and have better anonymity than other States as well. The structure that you spoke about is not something that every real estate investor needs. A structure is unique to your situation and your goals. It should be created with these considerations. Without additional context, it is not possible to say in detail what you need or what is recommended for your specific situation. This would be a good conversation to have with an attorney.