All Forum Posts by: Dan R.

Bill thank you for the answer.

I should point out I will not be managing any of the properties. I will be outsourcing everything to property management companies. All the financials will be handled by my CPA. Basically I will only be involved in buying and monitoring. I will also have everything audited once a year.

On the series llc. I live in GA and they are not allowed here. For insurance I will have liability insurance on the holdings company just in case of spillover liability.

The risk is high and the reward is low.

I am going to be purchasing a few properties come January first so I set up a LLLP with me as the GP, my trust as the Limited(taxes directly pass through to me), and my children's trust as the limited. I had originally planned on using the LLLP to own single member LLC's for each of the properties(for the single family houses I would put multiple houses in each one). Now I am beginning to worry about the "parent company" liability.

Now I am thinking to better protect the "parent company" I use LLLPs to hold title to each property.

FIrst Plan:
Smith Holdings LLLP
Owns:
1. One Main Street LLC
2. One South Street LLC
3. One North Street LLC,
etc.

Second Plan:
Smith Holdings LLLP would act as the limited partner in the LLLPs that would own the properties. I would then create a separate management LLC to act as general partner of the "subsidiaries."

Smith Holdings LLLP
Limited Partner of:
1. One Main Street LLLP (General Partner Smith Management LLC)
2. One South Street LLLP (General Partner Smith Management LLC)
3. One North Street LLLP (General Partner Smith Management LLC),
etc.

Or am I just crazy worrying about something that will not probably happen? I live in GA by the way.

To own my LLC's for my rental properties I am going to set up an LP or LLLP in Delaware(I am concerned about privacy because my wife is a surgeon). I would also do it in Delaware because in my state Georgia it is legal for a foreign entity to not register and own GA LLC's.

I am also doing it to transfer interest to our children.

My question is would you do an LP or LLLP?

I know if I did an LP I would definitely make an LLC the GP. If I went with an LLLP would it be necessary to have the LLC as GP? Can the LP/LLLP own the LLC that is the General Partner?

So my set up would be like:

BLUE PROPERTIES LP or LLLP(Delaware)

owns:

ABC LLC, DEF LLC, GHI LLC, JKL LLC, MNO LLC, etc. (Georgia)

I live in Georgia and want to set up a parent LP/LLLP out of state because in GA an entity that owns LLCs organized in GA does not have to register here(and you do not have to disclose the owner of an LLC in GA on public filings).

What state should I organize the LP/LLLP in? I would like a state that does not allow foreclosures of interest? I originally planned on using Delaware but I am also looking into Alaska, Nevada, and Wyoming.

My Plan is:
Out of state LP/LLLP owns multiple LLCs in GA that will be used to purchase the investments properties in GA.

Then I will set up four trusts to own the interest. (one for me as GP, one for me as LP, one for my daughter LP, and one for my son LP.) Or should I set up a LLC as GP? Is it necessary in a LP/LLLP if it is only owning LLCs and no actual properties/investments?

By the way I have flipped 31 houses in the past six years so I am not new to flipping but the the business structure. I previously used one LLC to do it.

And I will have an attorney do my paper work.