All Forum Posts by: Satyajeet Dodia

Thanks to all of you for your valuable input.
I have decided to simplify my structure. I am going to dissolve the WY LLC.

Since the WY LLC owned the TX LLC, how do I 're-assign' the "TX LLC interest" to be owned by myself (and spouse) in my personal name? The WY LLC was named as managing member of the TX LLC .

Also should I consider having only myself as the manager (and not add my spouse) - otherwise it becomes a partnership and I would have separate cost to file a partnership return? My preference is that we both own the TX LLC equally.

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I have 2 questions:
1. Is there any way to search within specific forums only. When I search for a phrase it seems I get results from all forums.

2. Is there any way to search for specific phrase?

Any pointers appreciated!

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Quote from @Stuart Udis:

@Satyajeet Dodia Who signed your lease if not the deed holder and no a contractual relationships is not necessary to be sued. If you fail to remove icy conditions from the sidewalk after a winter storm and your neighbor slips and falls while walking their dog do you really believe they cannot sue whomever is the property owner because there is no contract? Same fact pattern but its your tenant who slips and falls instead..... what prevents the tenant from naming the property owner as a defendant in the lawsuit? Tenant's guest? Absolutely nothing. Deed holder is almost always named because its the easiest party to find...deed's are recorded and public.

It also sounds like the Wyoming LLC is the deed holder and the transactional costs associated with re-titling the real estate is likely going to be more expensive than continuing to maintain the Wyoming LLC. This is the unfortunate reality of most who over pay for asset protection, they don't have a clear understanding of what they are paying for and how the structures actually protect them.

@Stuart Udis

ok, That makes sense, Sigh!

The TX properties are owned by the TX LLC. The WY LLC is the member (owner) of the TX LLC. In that case there is no re-titling needed, but what do I need to do remove WY LLC from the picture?

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Quote from @Stuart Udis:

@Satyajeet Dodia You are the latest to pay for their alarmist asset protection service provider's holiday vacations and children's college funds. As others have already noted this is completely overkill. You would have been perfectly fine with a TX LLC given that's where the properties are located. No need for a Wyoming LLC. The property management LLC's are the latest gimmick these alarmists use to drive up their revenues at their clients expense. Deed holders whether an entity or individual almost always get named as defendants. Period.

Your structure does nothing but provide plaintiff's attorneys additional defendants to add to claims which only complicates litigation. This is the reality but very few who seek out these services take the time to ask why and how these entity structures help.

Thank you Stuart. I was given to understand that tenants/tenant lawyers can only sue someone they have done business with. If there was no contract/business/transaction between tenant and deed owner can deed owner still be sued?

Assuming yes, then I dont need the WY LLC. Given my situation what do I have to do? Do I just 'sell' interest in the TX LLC to myself (on personal basis) and then dissolve the WY LLC ?

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Quote from @Bruce Woodruff:

Waaaay too much, lol it must be exhausting running all of those unnecessary companies.

Question - did the Business Advisors set up all of these entities and how much did they charge you to set them up?

I set up the entities using diff companies and paid about $1000 for all three (I got minimal boilerplate operating agreements). ABA cost was about $5500 that included comprehensive operating agreements for all three and subscription to their portal.

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I need some guidance since i have got diff opinions from diff CPAs on my situation.

I have three LTRs (in TX) owned by a TX Series LLC. The TX LLC is owned by a WY LLC (as per advice/plan I had received from Anderson Business Advisors).

I have one STR in TX and one LTR in NC that are personally owned.

I have a C-Corp (no assets) as the Prop Manager to manage leasing and rental collection for all 4 LTRs. This was created as part of same plan from ABA. As I understood that allowed me to have an extra layer of liability protection. No Employees in the c-corp, just officers.

What should be the simplest entity structure? Do I need to re-structure? I do intend to acquire more LTRs in TX over next 2-3 years.

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Hello,
I want to file certificate of formation for a TX Series LLC. Can anyone share a template or send me the clause that I need to include in the 'supplemental info' text box, that will indicate that this will be a Series LLC ?
Any pointers appreciated.

Thanks,
SD

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All Forum Posts by: Satyajeet Dodia

Satyajeet Dodia has started 3 posts and replied 7 times.

Post: Is my Entity Structure overkill ?

Post: Searching in forums

Post: Is my Entity Structure overkill ?

Post: Is my Entity Structure overkill ?

Post: Is my Entity Structure overkill ?

Post: Is my Entity Structure overkill ?

Post: Required clause on Certificate of Formation for a TX Series LLC