All Forum Posts by: Stacy Gunn

We are closing on a 9 unit in TN which is considered a commercial property. I know that the FONCE exemption for the excise tax is only available for buildings with 4 or fewer units so we would be subject to this hefty tax if we own in an LLC. The deal doesn't make sense if we need to pay these taxes and I don't want to be exposed by doing this in my name vs an LLC. What have others done in this situation?

@Matt Duprel Hi Matt, Ultimately we set up the Series LLC and I had to register DBAs for the child series to set up separate bank accounts for each entity. I couldn't find a bank in WA or TN that would deal with the entities without one for different reasons. I am keeping everything separate for accounting purposes. I have to say that I have no clue if I did this right. My lawyer told me I shouldn't need DBAs but banks disagreed and I have found it difficult to get a straight answer from anyone, lawyers included, about what should be done to ensure this is correct. I am just hoping that we are set and I also got an umbrella policy!

@Scott Smith this is very helpful, thank you so much! I have Quickbooks and can account for everything separately.

Hi, 

We are looking to open separate checking accounts for each child in a Series LLC we just started in TN. We are out of state and have had both large banks (Chase) and local TN banks say they would only open one for the parent. If anyone has had any luck, please LMK!

@Scott Smith so you can operate with one bank account for the parent and just keep the child series accounting separate? I have heard that you need separate bank accounts for each child, but banks are unwilling to open them up as they don't have separate EINs so it's a catch 22. 

We just formed a TN series LLC for properties in TN but live in WA, a state that doesn't recognize the structure. Chase wouldn't open bank accounts in the name of the cells and we couldn't find a local TN bank who would set this up for us living out of state. What do other people to do here? Should we set up a DBA in the name of the cells to set up the bank accounts that way?

Thanks Lance!

We are new out of state investors and are setting up a revocable living trust to hold our assets. Our lawyer recommended using our personal names to name the trust but I thought it was better to pick something that was anonymous? I'm just curious if anyone has an opinion or if it even matters here. 

We are new investors and asset protection is important to us so we are looking to form LLCs for our rentals. We met with a lawyer recommending a series LLC which sounds great but they had a hefty price tag associated with formation when I know that the actual LLC fees are only around $300 and operating agreements are fairly standard to create. I am not a lawyer and absolutely want to use a professional to help but I also want to find out what is a reasonable cost for a lawyer to set up? I also need a registered agent service as we will be out of state. If you have had any experience with this, I'll take any and all advice. Thanks

Thanks Victor! It's a different property but I completely agree that a solid team there is key.