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Updated 11 months ago on . Most recent reply
![Errol Graham's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2970106/1713278683-avatar-errolg5.jpg?twic=v1/output=image/crop=384x384@0x63/cover=128x128&v=2)
Asset ownership structure and related issues
My wife and I previously owned real estate in our joint names in both Florida (where we currently reside) and in Virginia (where we previously reside)
Following ur research and some legal advice, we established two trusts (one in each of our names) and also two LLCs one for all the properties in Virginia and the other for all the properties in Florida.
We have deeded all the properties in Florida into the Florida LLC, but we have not done so yet for the Virginia LLC. We have had some issues with getting insurance for the Florida properties in the LLC and also related issue with the Mortgage (which is in our name).
When our lawyer requested EINs for the LLCs we were informed by the IRS that we need to file a 1065 for each of the LLCs.
Our structure is that the LLCs are owned by the two Trusts (50%) in each of our names. Although we will file jointly for the first time, the Trusts are not considered disregarded entities, since Florida is not a Community Property state.
We are currently waiting to see the experience with the Florida LLC, re insurance, tax, beneficial ownership issues before we deed the Virginia properties into the LLC. Depending on the experience we may opt not to go the LLC route and try to establish other strategies for asset protection that is consistent with management and cost minimization.
Would appreciate hearing about the experiences of other real estate investors, including about the pitfalls to avoid with this kind of structure?
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![Chris Seveney's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/329845/1674401826-avatar-7einvestments.jpg?twic=v1/output=image/crop=4480x4480@0x336/cover=128x128&v=2)
@Errol Graham
For single family rentals we typically do not put into a LLC.
We acquire additional liability insurance and third property manager where we have an attorney review the indemnification clause.
We have found the amount of work with bank accounts, taxes etc is not worth the money as the risk is so minimal.
Still have yet to ever have anyone tell us what we could get sued for that would not be covered by insurance or the property managers insurance
- Chris Seveney
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