All Forum Posts by: David Disraeli

Hello David,

I have formed over 90 series LLCs in Texas and manage one in Wyoming.  Wyoming charges $60 plus $10 per series each time (unless you do them all at once) and it must be done on paper. By comparison, TX is $25 and 4 clicks of a mouse!   @Frank Paladino is correct, you either start fresh in the foreign state or register your existing entity where you are operating. The advance to using say a TX LLC in OK is that you don't have to obtain another TAX I.D., bank account, or operating agreement. This can become burdensome. As you are aware, some states do not recognize the series structure, however in that case, you form a series in your home state and register the main entity in the foreign state. Unfortunately, no one can promise you how a court in the non-series state would treat your series but as a general rule, they would be duty bound to follow the contours of the state in which the original LLC was formed. I have personally registered Texas LLC's all over the country and don't anticipate any issues. PM me if you'd like to continue the conversation.

HI Kevin,

Since you already have a Texas LLC you can simply register it in any other state except CA (they charge $800/yr). Each state has its own definition of "doing business" there, but having a rental would qualify everywhere. The cost is usually $100 to $300 one time and some have a small annual fee. They all have an annual report that is due. Creating a new LLC in other states also works but then you need a separate EIN, operating agreement and bank account. If your TX LLC is a series LLC, then you can separate the liability for each property in Texas or outside of Texas. You also need a registered agent in that other state. That's pretty much it. I can do it for you for it is fairly easy. LLC University is a good site that has all the states' fees. Cheers!!

Hi Cierra!

I create series LLC structures designed to hold multiple properties. PM me if you'd like more information or Google David Disraeli series LLC.

Cheers!

That will work fine as long as you properly register in Miss. It's easy. You should consider a series LLC.

Hi Mike,

The answer depends on a few things. One is whether any of the LLC's are multi-member as single-member LLC's have zero filing requirements with the IRS. In community property states a husband and wife are considered a single member. This way all the income/losses are reported on your 1040, not a 1065 (partnership) or 1120s etc. The other issue is whether you are considered "doing business" in those states. Generally, if you have a tenant that is considered doing business. If this is the case, you'd have to register in that state anyway. In CA doing business means simply making a cell phone call while in that state!! I understand your desire to simplify but I don't think the taxes are any more complex if they are all single member. Happy to talk offline if you like.

URS Agents is who we use

Thank you @Nathan Gesner  Thank you for pointing this out.  Lets clarify so readers don't get confused 

1.  There are no tax filings in TX or with the IRS UNLESS you opt for partnership taxation and I have 2 clients out of hundres doing that.  2. TAX ID tax 3 minutes to get.  3.  Bank Account 20 minutes.  There is zero ongoing complexity,  schedule E is still schedule E and nothing changes in that regards 4.  Annual business filings are another three minutes/year.  In fact, I do them for free.

The difference between zero liability and any liability is a big difference.  

You only need an LLC if you 1: get sued for more than your ins limits. 2. Die. 3. Become incapacitated. Because LLC insulates you from all three. It is not about paranoia it is just good ole common sense. If you can predict these three events great. It is true a regular LLC is $300 and $0 per year to set up but you have to do 15 things right afterward. A series LLC does not have a dropdown box at least here in Texas. You have to modify the formation documents manually. Privacy is another matter. Some investors care, some don't. Mine do. So we make them financial ghosts. Can a private investigator find out who they are with enough time/money? Yep. The average Joe will never connect the dots if done correctly.

@Joe Splitrock it is true that a deed of trust is a recorded document evidencing that you owed money on it at some point in time. However, the real benefit of anonymous structures is the inability to go to any appraisal district or similar search tool, type in a name and see a list of properties. Alternatively, a person types in a property address and discovers its owner. In our structures, this is not possible. To connect who has a deed of trust against property and trace it to who owns it now requires some assumptions, but no certainty. As for umbrella policies that is easy. The LLC takes on one policy and it covers all the properties in the series - with no limit. There is no extra tax preparation for an LLC that is set up by a trust and it does not take hours to set one up if you hire an expert. True it is a DIY project but it works.

There is no federal taxation of a single member LLC and there may or may not be state income taxes. Texas has none. I found out the hard way that forming an anonymous LLC may work in one state but not in others. Some states demand to know who has signatory authority even if it is an entity. They want the human's info. I would never tell someone to buy rental property in their own name when LLC's are so cheap. We form anonymous series LLC's in Texas then register that LLC all over the country but we don't use a WY LLC or other anonymous state. Instead, we use a blind trust. Takes about a week or so.