LLC in California. How many properties

[Antonio Martinez]

What is the best way to open up an llc. How many properties do you have in one llc.

Also once the property is in the llc how would you refinance?

[Scott Smith]

@Antonio Martinez When it comes to asset protection in CA, more often than not I will establish a DST (Delaware Statutory Trust) for my clients. As @Michael Albaum mentioned the $800 per LLC that is assessed in CA is a heavy price to pay as your properties stack up.

The DST is not obligated to pay the $800 franchise tax mentioned above, and can contain as many assets as you like. The DST is viewed as an estate planning tool, and therefore exempt from the far-reaching corporate tax laws set forth by California's FTB. A properly set-up DST will both protect your assets and bypass the burdensome franchise tax that would be levied against a Series LLC or Traditional LLC.

The Delaware Act expressly provides that “[n]o creditor of the beneficial owner shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the statutory trust.” 12 Del. C. §3805(b). The title to trust property may be vested in one or more trustees, but shall not be subject to claims against the trustee which are unrelated to the statutory trust.

More information can be found in this article I wrote for BP: https://www.biggerpockets.com/blog/california-real-estate-investors-delaware-statutory-trust/

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

If you have any questions feel free to leave a reply or DM.  

- Scott