Asset Protection For Out-Of-State Rentals

[Lucy Huang]

HI! I am a new investor in California looking to buy out-of- state rentals in Ohio. I was told for the best asset protection to have each rental property under an Ohio LLC and to have Wyoming as the holding company. I would be listed as the manager member of the Wyoming Holding Company. For the Ohio LLC, I would be listed as the manager and the Wyoming holding company would be listed as the member. I was also told to have separate bank accounts for my Ohio LLC and the Wyoming LLC.

1. Do I have to file taxes on my Wyoming Holding company?

2. Since I'm techically doing business in California, I know I have to file my Ohio LLC as a foreign LLC. Do I Have to file the Wyoming company as a foreign company as well in California?

3. Since I'm the only member in the Wyoming Holding company, do I have to make it a multi-member LLC for better asset protection. I heard single member LLCs don't have as much asset protection. Wouldt the Ohio LLC be considered a multi-member LLC since it has both me and the Wyoming LLC listed as members?