Setting up an LLC for protection and anonymity. What is best?

[Fernando Domingo]

I was researching LLCs and how to set them up when you are an out of state investor. There is so much information and it's getting confusing and seems to be pretty costly to organize everything. 

It seems like anonymity, inside protection and outside protection are the main reasons for setting them up. I live in California so Setting up so many LLCs can get costly, but I'm sure that the protection that LLCs offer are well worth it. 

There is a lot on setting up a primary LLC in Wyoming and having LLCs in the states that your properties are in with the Wyoming LLC as the managing member.

Does anyone have other advice as far as setting up a LLC structure?

[Nathan Gesner]

Quote from @Fernando Domingo:

I was researching LLCs and how to set them up when you are an out of state investor. There is so much information and it's getting confusing and seems to be pretty costly to organize everything. 

It seems like anonymity, inside protection and outside protection are the main reasons for setting them up. I live in California so Setting up so many LLCs can get costly, but I'm sure that the protection that LLCs offer are well worth it. 

There is a lot on setting up a primary LLC in Wyoming and having LLCs in the states that your properties are in with the Wyoming LLC as the managing member.

Does anyone have other advice as far as setting up a LLC structure?

I think the benefits of an LLC are greatly exaggerated. California is one of the few exceptions where I would say you need additional protection. I set up my own LLCs in Wyoming for $200 and 15 minutes of time through a website, which is very common. That includes the state filings, the Tax ID, the documents needed to open a bank account, etc.

Have you considered an umbrella insurance policy? Anonymity shouldn't be a concern in such a large market, but you may want extra protection in a litigious state. Umbrella insurance is very inexpensive and easy. Do you know why it's very inexpensive? Because the insurance companies know how rare it is that you'll ever need it.