All Forum Posts by: George Skidis

The Garn Saint Germain Act (1984?) allows you to place real estate in a land trust for estate planning purposes and the bank will work with you. This also gives you privacy and avoids probate. Then your LLC leases the property from the trust with the right to sublet the property. You should actually set up a lease and print it. The LLC can then manage the property. If the LLC gets sued, it owns nothing but the contracts and a check book.

If the LLC is a single member, it is filed on your personal tax return. No asset protection there. A multimember LLC must be a separate income tax return. You can choose Partnership, S Corp or C-Corp.

Be careful when applying for a tax ID number for your LLC. If you indicate which entity you choose, then a tax return must be filed for that tax year. So apply for a C-Corp in Dec a return is due 4 months later.

My article in the forums indicates ho the State of Illinois just gutted the LLC asset protections.

Good Luck and Good Investing.

Join Jane Garvey's real estate club. She Runs the Chicago Creative Investors Association (CCIA). They just sponsored a Cash Flow 101 Game night and had great turnout.

Not aware of the exact circumstances.

Personally, I would never open a Series LLC in the State of Illinois. The series is a link for plaintiff attorneys to look up every property in the series. Get sued on one get sued on all.

Recently the Illinois legislature gutted most of the protections that made an LLC a desirable entity choice in Illinois.

As of January 1, 2025, several new Illinois laws have come into effect, impacting Limited Liability Companies (LLCs) in various ways. Key changes include:

1. Personal Liability of LLC Members and Managers

Senate Bill 2765 amends the Illinois Limited Liability Company Act to clarify that certain provisions do not limit the personal liability of LLC members or managers. This change emphasizes that under specific circumstances, courts may "pierce the corporate veil," holding individuals personally accountable for the company's debts and obligations. ilga.gov

2. Pay Transparency Requirements

House Bill 3129 mandates that employers with 15 or more employees, including LLCs, must include pay scales and benefits information in all job postings. This measure aims to promote transparency and equity in compensation practices. icpas.org

3. Personnel Records Access

House Bill 3763 expands the Illinois Personnel Records Review Act, requiring employers to provide employees with access to a broader range of personnel records upon request. Employers must comply within specified timeframes, and non-compliance may result in penalties. icpas.org

4. Pay Stub Record-Keeping and Access

Senate Bill 3208 obligates employers to furnish employees with copies of their pay stubs within 21 calendar days of a request, up to twice in any 12-month period. This requirement applies even after an employee's separation from the company. icpas.org

5. Restrictions on Mandatory Meetings

The Worker Freedom of Speech Act prohibits employers from requiring employees to attend meetings that communicate the employer's stance on political or religious matters. Retaliation against employees who decline to participate in such meetings is also forbidden. knowledge.dlapiper.com

6. Employment Verification Procedures

Senate Bill 508 prevents employers from imposing work authorization verification requirements beyond those mandated by federal law. It also prohibits adverse actions against employees based solely on the receipt of a notification regarding work authorization discrepancies. icpas.org

LLCs operating in Illinois should review and, if necessary, update their policies and procedures to ensure compliance with these new regulations.

The above is an excerpt from the Illinois REIA Saturday Summary.

Personally, I would never open a Series LLC in the State of Illinois. The series is a link for plaintiff attorneys to look up every property in the series. Get sued on one get sued on all.

Recently the Illinois legislature gutted most of the protections that made an LLC a desirable entity choice in Illinois.

As of January 1, 2025, several new Illinois laws have come into effect, impacting Limited Liability Companies (LLCs) in various ways. Key changes include:

1. Personal Liability of LLC Members and Managers

Senate Bill 2765 amends the Illinois Limited Liability Company Act to clarify that certain provisions do not limit the personal liability of LLC members or managers. This change emphasizes that under specific circumstances, courts may "pierce the corporate veil," holding individuals personally accountable for the company's debts and obligations. ilga.gov

2. Pay Transparency Requirements

House Bill 3129 mandates that employers with 15 or more employees, including LLCs, must include pay scales and benefits information in all job postings. This measure aims to promote transparency and equity in compensation practices. icpas.org

3. Personnel Records Access

House Bill 3763 expands the Illinois Personnel Records Review Act, requiring employers to provide employees with access to a broader range of personnel records upon request. Employers must comply within specified timeframes, and non-compliance may result in penalties. icpas.org

4. Pay Stub Record-Keeping and Access

Senate Bill 3208 obligates employers to furnish employees with copies of their pay stubs within 21 calendar days of a request, up to twice in any 12-month period. This requirement applies even after an employee's separation from the company. icpas.org

5. Restrictions on Mandatory Meetings

The Worker Freedom of Speech Act prohibits employers from requiring employees to attend meetings that communicate the employer's stance on political or religious matters. Retaliation against employees who decline to participate in such meetings is also forbidden. knowledge.dlapiper.com

6. Employment Verification Procedures

Senate Bill 508 prevents employers from imposing work authorization verification requirements beyond those mandated by federal law. It also prohibits adverse actions against employees based solely on the receipt of a notification regarding work authorization discrepancies. icpas.org

LLCs operating in Illinois should review and, if necessary, update their policies and procedures to ensure compliance with these new regulations.

The above is an excerpt for the Illinois REIA newsletter of 22 Feb 25

The first thing to do is get the permission of the existing mortgage company. If your deal is built on secrecy and concealment, what are you scared of?

If you move title to the property into a trust for the seller's "Estate Planning purposes", you still need the mortgage company's approval. 

Any effort to avoid dealing with the mortgage holder is fraud. The key point here is that the seller is selling not planning their estate. Any telephone conversations, correspondence submitted via US mail fall into the categories of wire fraud and mail fraud.

Without the permission of the mortgage company there is no way to legally do this. There are a few illegal ways but that is the wrong way to get into this business.

I have heard all the arguments about how the mortgage company doesn't care who writes the check as long as they receive it. That may be true. But there will always be that one company that will prosecute you.

Insurance for 1-4 families is reasonable. Insurance for a 10plex will be higher.

How many bedrooms or bathrooms in each unit?

Is it all on one level or a two story?

If a single level you might consider 55+ independent living. If that works you may end up with tenants who stay longer and fewer vacancies.

I missed the part where the rentals will be in Indiana. Years ago I spent many months working in Indianapolis and staying at the Canal Street apartments. 

I am unfamiliar with LLCs in Indiana. If you need an attorney PM me for some info.

Not an attorney and don't play one on television. A 1031 must be for equal or greater value or the funds in excess of the value of the new purchase are taxable. The exchange must also be for like kind and quality. So house for house, apartment building for apartment building.

Have your parents considered renting the house they are living in for two years and moving back into the rental unit for 25 months. When a rental is taken out of service for personal use the accumulated depreciation goes away over a short period of time. 

After 25 months, If they can prove that they lived in the property for two of the past five years, they can sell it as an owner-occupied residence. That sale should qualify for the $500,000 sale of personal residence exemption for tax purposes. Then they could move back into their current home. 

I sell insurance and prepare income tax returns but I am not an attorney and don't play one on television or radio.

The Illinois Legislature has a law either pending or just passed that will GUT LLC protection. Rendering the LLC almost useless in Illinois. The new law eliminates the corporate veil for LLCs.

You should purchase the maximum liability protection you can get on the property policy. Then get a COMMERICIAL Umbrella policy or 1 or 2 million.

Then get a personal umbrella policy to cover your home and vehicles. Auto limits of 250/500/250 and Homeowners liability of 500K should be the minimum you carry. You can always get more. A personal liability policy "MAY" extend to one or two rentals but if you are planning on building a portfolio consider the commercial umbrella.

Another thing to consider is that the courts frown on carry high personal liability but low business liability when trying to hide behind the vail.