All Forum Posts by: Bobby Casey

I prefer to segregate assets by holding the property (or any other type of asset) in separate LLC's thus limiting the risk to each property and to me personally.

Then use the LLC (taxed as Scorp) for your operating business. This keeps your assets (the property) free of liability associated with the operation of the business.

I prefer the LLC because of the liability protection it offers from both inside and outside creditors (if properly structured) and the Scorp tax election because of the ability to minimize your social taxes (15.3%) and also the ability to pass through any losses to you personally.

If the business becomes large enough, switch to Ccorp tax status. I recommend to my clients to do this when you anticipate EBIT to exceed $1m.

Bryan,
I am very familiar with Charlotte. Most of my advisory board members live in or around Charlotte. I am there at least once per month for meetings.

I would seriously consider moving some of your investments offshore. You could do this many ways and even diversify the portfolio outside of the US.

You could buy RE outside of the US either as a vacation property or residential rental. If you have a longer time horizon, maybe land.

Also buy some precious metals stored outside of the US. Gold is the oldest form of money and will continue to be so. It is not necessarily an investment, but a hedge against inflation and a store of value.

You could then consider investments in non-US equities. There are lots of investment options not available in the US, but can be utilized if done properly offshore.

Thanks Bryan. I will do my best.

Mat,
For your operating business, yes, you need to register in your home state.

I would recommend an LLC taxed as an Scorp.

For any RE owned, they should be registered out of state as mentioned.

Find partners. There are lots of people out there with money, but no time to find or manage deals.

If you can find a money partner, you can take an equity stake in each deal for doing the footwork.

Thanks Charles for the welcome.

I would form an LLC taxed as an Scorp for the property management business.

The property owners should have the RE owned by a non-CA LLC like NV or WY or as Steve stated, in a land trust with the LLC as beneficiary.

LLC's and LP's are both great vehicles for property ownership, but each has its own pros/cons.

For our clients needing LP's, we register a NV LLC as the GP with a 1% interest, and then register the LP in their home state.

This gives ultimate control to the managing partner with no personal liability.

LP's are also great for estate planning purposes.

It really depends on where it is registered. I would never advise anyone to have an LLC in CA for example.

But people do occasionally have the need for a seasoned LLC for various reasons.

But you would only be able to recoup your cost of the operating agreement (maybe) and the filing fees.