Wyoming LLC owns CA land trust, lawsuit is in CA, how does Wy LLC protect CA property

[Diane Tycangco]

Hi everyone, I am contemplating asset protection strategies for my California and Memphis properties and a real estate guru says to hold the California properties in land trusts owned by a Wyoming LLC. This WY LLC would have another WY LLC as the trustee. Also, he suggested a Tennessee Series LLC for the Memphis properties, owned by another WY holding LLC.

I was wondering if you have had experience with this type of arrangement and what you thought. Also, if a tenant sues me in California and my California land trust is owned/protected by a WY holding LLC, I presume that California rules prevail and so how will having a WY LLC protect me? Will California pierce the WY corporate veil?

Any LLCs would have to be single member since I don't have any co-owners.

How would this type of arrangement compare with forming a single member LLC in WY with California property in a land trust whose beneficiary is a WY LLC owned by a family limited partnership whose general partner is a corporation 1% controlled by me and limited partner 99% is me. If the lawsuit were in California or Memphis and those LLCs and/or family limited partnership is in those other states, how will those WY LLCs protect me?

This is so confusing and so I hope you experts can share your advice.

Thanks so much.

[Chris Seveney]

@Diane Tycangco

It’s confusing because personally I think the advice you were provided is the equivalent to wearing four seatbelts when driving to the store in a tank.

Unless you are stupid rich, anonymity is over rated. People don’t care who you are (sorry but it’s true) and if someone wants to find out who you are they can.

Regarding LLC's all over the place, we have one in our home state and file as foreign entities.

Even an LLC may not be needed if you have a good insurance policy

Right now you are probably paying a few thousand dollars per year extra in fees and taxes for setting up your entity like this.