Holding Company - LLC structure?

[Kyle Patton]

Hi,

I am looking to start investing in rental real estate properties in Texas with one other partner. We both live in California. Right now we are trying to figure out how to set up a business structure that will limit our liability and hopefully shield our properties from any trouble down the road.

We have been reviewing some Clint Coons videos on Youtube and he recommends a Wyoming holding company structure with subsidiary LLCs. The Wyoming holding company would provide charging order protection and anonymity and the Texas LLC(s) would hold our Texas rentals. I understand there are potential complications with this structure when it comes to borrowing money and refinancing, etc, not to mention significant legal expense and complexity.

What are the forum’s opinions on this type of structure? Is it overkill? We don’t mind the extra expense and complexity if this type of setup is the best way to protect ourselves. We’re starting with one property, but we hope to have multiple properties down the road and possibly other side businesses and we figured we should try and set ourselves up for success from the beginning rather than trying to fix things later down the road.

Appreciate any advice or comments!

Yours,

Kyle