All Forum Posts by: Jay P.

Thanks @aj singh. In that case, what is the incentive to set up an out of state LLC? Isn't it better to have a CA LLC if you are going to pay the fee anyway?

Thanks @Jon Schwartz. Yes, we are forming the LLC so that we invest as a single entity to meet the minimum requirement. As you said, we are asking the syndicator if we can invest individually even though the amount is less than the minimum. In case, that option doesn't exist, we would have to setup the LLC right?

Allen, Anderson advisors was one of the lawyers I consulted with.

I'm a resident of CA and I plan to invest in a syndication in Texas along with a friend of mine. I talked to a few lawyers and the recommendation was to create an LLC in WY with both of us as members and invest in the syndication through the LLC. A few questions though.

1. Once I register the LLC, how do I get a WY address to create a business bank account? Neither of us reside in WY or TX.

2. It seems like I would still have to pay the $800 annual fee to CA for the LLC as long as I reside in CA even if the LLC is incorporated out of state and holds investments outside CA. Is there a way to circumvent this?

3. I'm told the syndication would generate a K1 for our LLC and then the LLC would have to generate two separate K1s for each of the members. Is this a straightforward process?

Thanks,

Jay

Thanks Lance. Can I use choose my living trust to be the member when setting up the LLC?

My friend and I have committed to investing in a multifamily deal in Texas and we are thinking of creating an LLC with both us being the managing members. I would like to know if the membership has to be in my name or can my revocable trust be a member? The reason being, I'm not sure how will the assets be handled in the LLC if I'm no longer there.

Of the three options, which ones are possible and recommended to be the members.

Individual (me) - Individual (friend)

Trust (me) - Individual (friend)

Trust (me) - Trust (friend)

Thanks.