Asset Protection : LLC Formation for First Investment

[Kashyap Shah]

Hello ,

I am Kash from San Jose,CA and I am a Rookie in the world of real estate investments. 

I am planning to buy my first investment property in Austin, Texas. 

I have a few questions related to LLC formation . I have heard that forming a Wyoming LLC is better for asset protection. So I do have following questions :




1) What are the benefits and drawbacks of forming an LLC in Wyoming versus Texas?

2) How will Wyoming's laws and regulations affect the management and operation of the LLC?

3) Are there any specific requirements or compliance issues for an out-of-state LLC owning property in Texas?

4) Are there any restrictions or limitations on the LLC's ability to purchase, sell, or finance property in Texas?

5) Are there any other legal or financial considerations I should be aware of?



I'd appreciate any guidance or recommendations. 

Thanks ,

Kash

[Chris Seveney]

Quote from @Kashyap Shah:

Hello ,

I am Kash from San Jose,CA and I am a Rookie in the world of real estate investments. 

I am planning to buy my first investment property in Austin, Texas. 

I have a few questions related to LLC formation . I have heard that forming a Wyoming LLC is better for asset protection. So I do have following questions :




1) What are the benefits and drawbacks of forming an LLC in Wyoming versus Texas?

2) How will Wyoming's laws and regulations affect the management and operation of the LLC?

3) Are there any specific requirements or compliance issues for an out-of-state LLC owning property in Texas?

4) Are there any restrictions or limitations on the LLC's ability to purchase, sell, or finance property in Texas?

5) Are there any other legal or financial considerations I should be aware of?



I'd appreciate any guidance or recommendations. 

Thanks ,

Kash

1. Let me save you some money. Skip the Wyoming LLC for one. Not needed. If you want your name to be hidden its a joke. I have worked for four billionaires and not one used a wyoming LLC. People do not give a whoot who you are and are not gonna come knocking on your door, and if they were, a wyoming LLC will not protect you.

2. Talk to your CPA / accountant but if you are in texas and buying in texas, they incorporate in texas.

3. Do you need a LLC? If you are financing it in your name, then keep the house in your name. If you can buy it in a LLC and the LLC is funded, then yes buy it in a LLC.

I am not an attorney, but have done a lot of the stupid stuff people tell you that you should do and at the end of the day every accountant and attorney after the fact told me all of that is such overkill and just a waste of $.