Entity Set Up: TX or WY?

[Lynn T.]

Hi BP,

I am very new to entity world here. However, I have recently been looking into asset protection for our rental properties. 

Two companies came up 1) Andreson Advisors 2) Royal Legal Solutions. 

Anderson set up a holding company in Wyoming which owned by a living trust. Then each property is individually owned by individual LLC that owned by the WY holding company.

Royal Legal set up a Series LLC in TX which owned by a living trust (I believe), then each property is owned by individual LLC that owned by the TX Series LLC. One of the thing that sounds attractive is that when comes time to file the tax return, this system allows investors to file with only one entity, which is the TX Series LLC.

Both companies have estate planning and SOLO 401K offered which is the same. I'm just more curious about WY or TX - what really are the differences in these two if any?

If you have experience about entity set up - please chime in :)

Lynn

[Ali Boone]

I wouldn't ask anyone other than your accountant (hopefully a real estate friendly one) for what the different options would entail and how best to do it. No offense to anyone on here, but if someone gives you even a smidge of bad advice, you could have a lot of trouble. Even if an accountant chimes in on here and answers, they don't know your specific situation financially and otherwise so I still wouldn't make a decision based off what they say. This should be a conversation offline with your accountant.