Florida LLC or series LLC??

[Walker Howard]

I found some properties I am on the brink of investing in, in the state of Florida. My question, is it better to register my LLC there or another state that would better protect my assets. In the near future I also will seek and acquire other properties (multi-family, single family home, etc) in other states. Wondering if a series LLC will serve me better for my overall goal? I understand as a series LLC I would be considered as a foreign entity in other states. Any Knowledge/advice/guidance is greatly appreciated....

[Scott Smith]

The Series LLC is ideal for anyone looking to scale up their investments, as it allows you to nest each property into it's on "child" series for protection without you needing to form a new LLC each time. However, you would need to form it out of another state, as Florida does not offer the Series LLC at this point. This article explains which states are preferred to establish [Series] LLCs from regarding their price and strength.

You would generally have to deal with paying additional foreign filing fees if you form an LLC in a different state than your assets are held, but if you introduce Land Trusts you can work around this issue. You transfer the property into a land trust (which does not trigger the Due on Sales Clause,) and then assign the LLC as the beneficiary. This way the Land Trust is conducting business in the state, not the LLC, working around the foreign filing fees involved.

Just some thoughts. finding an experienced attorney who can walk you through your options and give you a full strategy would be worth the time/investment. 

This is not legal advice, just my opinion as a real estate investor.