All Forum Posts by: Scott Everhart

Thanks Caleb. I listened to it as well. That's what further made me start to think about using Trusts with LLCs as part of a complete structure. Was hoping to get to more details on this and how it works and how to do it. Anyone know some really good IL Asset Protection Lawyers and CPAs that live and breathe Real Estate?

So, I've seen a lot of info on the drawbacks of using a S-Corp to hold your properties. LLCs seem to be the more recommended entity to use. But, it seems by themselves they too can have gaps in an overall Asset strategy. I've started seeing some recommendations around using Land Trusts as a way to acquire your properties and then use no more than 2 LLCs to complete the Asset strategy picture here. It appears one LLC holds controls/owns the various Land Trusts you have for each property and the other is an LLC setup as a Partnership and it files like an S-Corp with pass-through to you personal return. Does anybody know anything about this or can add to the way this works? Do you use this kind of strategy or similar? How do you structure yours?

Interesting point. Good to be aware of. I started to explore the Conversion of an S Corp into a LLC too. There are Statutory conversions and Merger conversions. IL seems to require a Merger conversion in order to do this....a little more complicated process, but doable. My understanding is there is a way to do this conversion with no tax consequence if all moved into the new LLC entity you set up for this. The merger paperwork is completed and filed with the Secretary of State. Once done you close down the S Corp. My understanding anyway from my readings on this topic. Are you aware of any other method to solve this?

Agreed Lance, that's why I'm asking about this and seeing if I can add the LLCs to my overall Entity Strategy while not messing up the S Corp I have in place to flow it's losses to my personal return.

Thx for the reply Antoine. Couple more questions please. 

1) Which LLC is owned by the S Corp? And are there any other members that own this LLC with the S Corp? What kind of tax declaration did this LLC declare as well so as not to be forced to do a tax return? Is there any property held in this one LLC or does it just own the other LLC(s)?

2) The other LLC(s) that hold the properties, is the owning member the one LLC noted above? Anyone else listed as a member so as not to be a single member LLC? What tax declaration did you make for these LLC(s) so as not to be forced to do a tax return for these LLC(s)?

3) Just to confirm, you are saying in this entity structure you are only doing a tax return for the S Corp and not for any of the LLCs...right? Then the S Corp return flows to your personal return as profit or loss....right?

Thanks again for sharing!

I was thinking I need to evolve my entity structure approach with my real estate business. My wife and I have an S Corp that holds our properties today. We have properties in IL and TN. I'm thinking I need to add some LLCs to my overall Entity Structure plan. Is it correct to have the LLCs owned by the S Corp and then move the properties into an IL LLC and a TN LLC? The S Corp would then own no property directly. Just owns the LLCs. Any thoughts or advice here? How should I set up the LLCs so I don't have to do tax returns for them but let everything flow to the S Corp for tax return handling? Anybody else deal with this type of structuring? Pros or Cons?

I have a new property I'm putting on the market to rent. A prospective candidate has come to my property and likes it. She is a woman going through a divorce and will receive alimony. The alimony will be her source of income for rent (No Job). How do I properly get proof of the alimony she will receive AND how do I protect myself from her either not paying or getting her alimony to pay? While she seems like a nice lady, I don't want to be caught in the middle if her X-Husband  decides he doesn't want to pay her. What are the proper steps here to cover myself properly?

Traci, please send me the contact info. Thanks!

Scott

Yep! Still interested. Do they do small repair jobs too? Or just large scale work?

Does anyone in IL have any good contractors they could recommend for Electric, Plumbing, Drywall/Painting, and Carpentry? Could you tell me if you found their work to be good and if you found their pricing to be competitive? Thanks!