All Forum Posts by: Olia Fogel

@Kevin Alvarado I would recommend looking into a Series LLC, which is a great option for holding multiple properties.

@Miguel Nambo I will message you on this.

@Adelaide Ning If you are looking for anonymity, then I would recommend using a combination of an LLC and a land trust. First you'll create an anonymous land trust (this should be drafted by an attorney), make your LLC a beneficiary of the land trust, and then transfer the property into the land trust by a deed. This also helps with transfer taxes.

@Francis M. If you have investors/partners that will not be involved in the management activities, I would recommend looking into a Limited Partnership as an option. As opposed to a JV or a general partnership, which do not provide limited liability, a Limited Partnership is an actual partnership that is formed and filed in a state (like an LLC). Some of its main benefits are the fact that it is simple to form, it provides limited liability, and allows you to pool money with business partners.

@Margie Fortune If you own multiple rental properties, then I would recommend looking into a Series LLC, rather than setting up a separate standalone LLC per property, as it is definitely more cost effective. Series has unlimited scalability, and creating new series does not require any additional filings or fees with the state. 

@Carol Lam If you are looking to potentially own multiple properties in the future, then I would recommend considering a Delaware Statutory Trust (DST). It has a parent-child structure to separate assets into secure series, similar to a Series LLC, extending liability protections to real estate investments within the structure.
Additionally, DSTs don’t have to pay the $800 annual Franchise Tax owed by LLCs and Series LLCs.

I would definitely recommend looking into a Series LLC, as it has unlimited scalability. Creating new series does not require any additional filings or fees with the state. Having a Series LLC will also not complicate your taxes or banking, as it can still be formed as a single member LLC and can be treated as a disregarded entity for tax purposes.

Regarding it not being "recognized" in NY, not all states allow the in-state formation of Series LLCs, but all states recognize a Series LLC that is validly formed in a state that allows a formation of this type of entity. 

@Arron Paulino Series LLC is a type of entity that basically has a parent-child structure, where just the parent entity is filed with the state and is assigned an EIN. Then for each property a separate "child series" is created. Individual series are completely isolated from each other from liability standpoint. With one property per child series, even if a series is sued successfully, it will not affect your other assets.

You can only set up the Series LLC in a state that allows the in-state formation of Series LLCs, even though all states recognize a Series LLC. You can also hold properties all over the US with this entity. I usually recommend setting it up in Texas or Wyoming.

The best course of action is to seek the guidance of an attorney with experience in entity formation, and ideally, experience with Series LLC in particular.

Self-Directed IRA owned LLC would be a great option for real estate investing. This way you will not need to seek the consent of a custodian to make a real estate investment or be subject to costly custodian account fees.

I agree with Richard, looking into a Series LLC as a holding company may be a great idea in your case.