All Forum Posts by: Mike S.

Also, don't forget to notify your tenant about the change of ownership. You may even create an addendum to the lease agreement to officially record this change.

It may void your title insurance it you do a quit claim deed. On the other hand, if you do a warranty deed, if any claim arise later on, your LLC can sue yourself for the title issue, and your title insurance should cover it.

I agree, that is #3 video. #1 and #2 are discussing the pro of the series LLC.

I just wanted to give some perspective to the series LLC subject. Like any other entity, there are pro and cons for each, and everyone should do due diligence to assess if it is right for them.

It all depend on your risk tolerence.

Creating and maintening an LLC has a cost. It's like insurance: would you pay every year a $1000 premium to insure your cellphone that cost $1000 and that you expect to keep 3 years? Of course not. Would you pay the same $1000 if you cellphone was costing $10,000? Maybe. Also be aware that LLCs are not a set up once and forget about it. You will need to maintain them and operate them properly to avoid piercing their veil. It will also limit your access to financing and may increase some other administrative chores.

Using LLC is an excellent tool for asset protection. But what do you have to protect? Are you a magnet for lawsuit? Do you have already a good liability and umbrella insurance policy that will cover you fairly for a broad range of issue?

There are many school of thoughts on the subject. A few members here will tell you that you should consider LLC when the free equity on your asset is over $100,000. For some it may be lower, for other it will be more. It all depend on what will make you sleep better at night.

If you are expending your business and expecting to grow your asset over the next few years, it may be worth starting having the structure in place for it.

Using LLC to hold your properties should be tax neutral. It also may be good for estate planning and lowering your estate taxes. On the other hand, creating a C corporation for managing these LLCs and/or properties could have a lot of tax benefit and tax shifting strategies. It gives you also access to a lot of fringe benefits and open the door to many retirement plans options.

Some of the issues with series LLC:

https://www.youtube.com/watch?v=J2ucQTdeGRQ

A good video to review:

https://www.youtube.com/watch?v=z8brn9j3L5U&index=9&list=PL3FUah8ohZLwgwT3r4lvvRNI7e5Nsze7_

Some good videos on the subject:

https://www.youtube.com/watch?v=ul32Yf9KJB0&list=P...

Also some blog posts:

http://clintcoonsblog.com/?s=land+trust

LLC are supposed to be tax neutral.

Regarding asset protection, OH has good charging order protection for LLC.

As a general rule, in most case it is better to open an LLC in the State where the property is.

If that State does not offer good charging order protection; it is suggested to open an holding LLC in WY where the charging order protection are excellent; This holding LLC will be the single member of the other LLC.

You can elect to have your LLC taxed in many different way (pass through, partneship, S or C).

Single member LLC by default are pass through entity for tax purposes and are not filing any returns. Multi-Member LLC are by default considered as partnership and file an informational return (1065) and issue K1 to the members that are reporting it in their own tax return.

As @Jaysen Medhurst stated there are pro an con of having an LLC. Mainly:

pro: asset protection, anonymity (depending on the state), estate planning (fair value gift tax exclusion every year)

con: creation and maintenance cost, limit the ability to get mortgage, bookkeeping and tax reporting cost, proper use to avoid piercing the veil.

LLC is not a replacement for liability and umbrella insurance.

It is usually better to have the LLC in the State where the property is. If you open it in another state, you will have to foreign register it in that State anyway, paying double fee.

Ohio also has much better charging order protection for your LLC than CT.

If you want even better charging order protection, you would create a holding LLC in WY that would be the single member of your OH LLC.

Tax wise, I am not sure if OH or CT LLC have state tax. But as your LLC is doing business in OH, that is where anyway local taxes would be due if any.

Here in Florida, any lease of 6 months or less would trigger a 6% sale tax. So all my leases are for at least 7 months, but usually 1 year. After that they revert to month to month with 30 days notice.