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Updated about 5 years ago on . Most recent reply presented by

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Kody Crouch
  • Investor
  • San Mateo
16
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14
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Entity advice for Californian investing out of state

Kody Crouch
  • Investor
  • San Mateo
Posted

I live in California, and have recently closed my first few real estate deals in Wisconson. I want to create entities to protect my personal assets from consequences of the real estate business.

As I understand it, the two entities that make the most sense for California Residents investing out of state are a Series LLC and a Delaware Statutory Trust. However, they offer slightly different protections and costs. California also has special fees that apply to out of state LLC's, and I don't understand whether the tax treatment of these entities are different.

Would appreciate any advice, as well as a reference for a lawyer to advise and help create protections offered by different entities (Series LLC vs Delaware Statutory Trust for example) and a CPA to help advise on the costs/benefits of using those same types of entities.

Most Popular Reply

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2,346
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Bill Hampton
  • Tax Strategist, Financial Planner and Real Estate Investor
  • Atlanta, GA
883
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2,346
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Bill Hampton
  • Tax Strategist, Financial Planner and Real Estate Investor
  • Atlanta, GA
Replied

@Kody Crouch

You have to pay California taxes because you live there and Wisconsin taxes because your properties are located there. You cannot avoid those taxes with a Series LLC or Delaware trust.

The best asset protection is a good landlord insurance policy and an umbrella insurance policy. 

Good luck and let me know if you have any questions. 

  • Bill Hampton
  • 404-482-3170
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Hampton Tax and Financial Services, LLC.
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