All Forum Posts by: Chris Kirkman

@Eamonn McElroy and @Caleb Heimsoth thanks for all your insight and I appreciate your perspective and advice.

I’m in the highest tax bracket and these are typically $400k+ single family homes with multi-family and small apartment complexes as what I’m focused on next.

For a bunch of $120k properties in the Midwest, I wouldn't bother, and would throw several into the same LLC maybe, but when assets get up there in value and equity, I want to keep them safe from litigation.

The cashflow and tax write offs more than cover these fees so that’s not my concern. I just want to know if there’s a better state for tax benefits for entities than the very protective state of Wyoming, regardless if I take some extra hits in fees from living in California.

@Caleb Heimsoth I believe those fees are write-offs and aren’t they less expensive, time consuming, and stressful than losing my house or other properties from a lawsuit?

I have read countless books and listened to a lot of audio, including countless Bigger Pockets podcasts, and found the majority of advice to protect all your assets through LLCs, and the assets outside the LLCs such as your personal home with a lot of equity in it, just as I have done with businesses I have owned through the years. 

None of these properties are self-managed since I only invest out of state and have property managers for those.  I also have good insurance.  Insurance will only go so far with liability, lawyers and litigation is expensive, and I don't want anyone touching my other properties or my own home in the event of a lawsuit that goes beyond what insurance would cover.

I appreciate the advice of everyone but, from those who have protected their assets through entities, have any of you found a better state than Wyoming for tax benefits for a managing/holding entity? 

Thanks all for your insights!

I understand that I'll have to pay income taxes and CA is going to want their annual $800 fee (another unfortunate "sunshine tax" for living in CA), but I'm just wondering if there's a better state than Wyoming for my holding LLC that'll own all the individual property's LLCs?

Wyoming (and Nevada) are known for their asset and privacy protection but are there better states to have that holding LLC (or S- or C-Corp)?

Asset protection is hugely important, and that’s most if the reason to hold property in an entity to begin with, but I’d rather use another state if the government has provided hugely more benefits firming in another state than Wyoming or Nevada.

Forming in CA would save me the extra filing fee (which is tiny in Wyoming) but wouldn’t give me the same protection as Wyoming... but would CA have extra tax benefits than Wyoming? What state would?

My wife and I have the strategy of owning investment properties under LLCs formed in the state each property is within and want to place all these LLCs within the ownership of one holding LLC. We live in California in a home we own but don't intend to own investment properties or any of those LLCs in our own California state. This holding LLC will be split between my wife and I and nobody else.

I know Wyoming is fantastic for liability protection but we are also, and more eagerly, looking for the best for tax benefits from depreciation write offs, expense write offs, and taxes from cashflow from all the LLCs that’ll be under it.

Would Wyoming provide just as good of tax benefits as other stats or is there another state that’s better with investment real estate tax benefits, especially with owners from California?

Thanks for your time and insight!

Thanks everyone for your responses and for the DMs! I will continue to do some research in these areas and reach back out.

Hi all,

Would any of you have a recommendation for a great agent who is also an investor and property manager themselves?  I am looking to invest in the Austin, San Antonio, or Plano market and have worked with similar types of agents in other markets.

My goal is to find an agent who knows any of these markets well since they invest in them themselves, knowing what would rent best in the best areas, and also can manage properties for me.

Any referrals are appreciated!