All Forum Posts by: Frank Paladino

Thank you everyone.  I am going to go with forming in the state doing business.  Just seems more logical and avoids the annual PA foreign entity fee.  In speaking with attorneys there does not seem to be any difference because you are still doing business in PA and subject to PA state laws.  PA also only requires annual report filing every 10 years so less expensive that way too.

As a follow up question, I have also read different opinions on bank accounts. Again, lots of different opinions so does not seem to be one right answer. Do I need to have a separate bank account for every Series LLC. Much less complicated to just have a single bank account. Some say it breaks the series veil and other say as long as you diligently follow the rules of separate account entries for each Series LLC there is no reason why a single bank account cannot b e used. Thoughts?

Myself and two partners have a Wyoming Series LLC. We are just starting out and purchasing a property in PA.

I have consulted several real estate attorneys with differing opinions.

Question. When forming the series (child) LLC, do they get formed in Wyoming or the state we are doing business. What are the advantages and disadvantages?

Example, if series is formed in Wyoming it would have to be registered as a foreign entity in PA.  Are the implications when considering asset protection and tax advantages?

Thank you in advance for your replies.

Thank you all for your replies!

I am a buy and hold investor and have started to accumulate a few properties and looking to do more.  Before I do, I wanted to ask what investors do to protect themselves as they acquire more and more properties.

Homeowners insurance covers the property and some limits on liability. The LLC provides additional protection. If someone sues the LLC at least your personal assets are protected (to a large extent).

However, the assets that sit inside the LLC are still exposed to lawsuits and in theory you could lose everything in your LLC's over one bad lawsuit. What are some strategies and additional insurance coverages that investors get in order to provide protection and help sleep better at night. I imagine with hundreds of units there is always someone bringing a lawsuit for some reason (especially in todays litigious world we live in).

Any feedback would be appreciated.

Thanks.

Thank you all.  This information  was very helpful.  I currently own a duplex without separate utilities and struggling to figure out a fair method of handling.  I am choosing to pay the utilities and include the clause above in lease.  It's not that much effort and ensures the bills get paid and is sort of self-managing to ensure usage does not get out of control.