Land trust, LLC, Anonymity and Asset Protection in Arizona

Land trust, LLC, Anonymity and Asset Protection in Arizona

Investor · Phoenix, AZ · Member since 2020 · 5 posts · 6 votes

I would like to setup LLC especially for Asset protection. This is for rental properties. Creating LLC by myself doesn't seem complicated but I read/heard about some clauses/jargons such as forced distribution, charging order protection, no right to return of capital etc. I did contact a law firm and the fees were outrageously high which included 1. Series LLC with anonymity registered in different state 2. S Corp 3. LLC for each rental property 4. LLC for other investments such as Notes 4. Land trust.

This proposed setup seemed very complicated to me.

Total cost = Initial fees (one time with thousands) for a package + monthly membership fee + registered agent fee for every LLC + one time cost to setup all these LLCs, S Corp, Land Trust etc (several thousands or enroll into another package)

So the total cost was too high. 

I dont know if the entity structure needs to be this complicated as cost of filing tax through CPA will also be high.

I would like to know how much this would cost approximately and how this is setup in general with LLCs or Land Trusts. 

Any references/contacts to lawyers/attorneys will be helpful.

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    How many properties do you have? For few investment properties, an LLC is highly over-rated.

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Satyendra Hiredesai

    Several attorneys I speak with recommend one LLC for every $1M of net worth in that entity

    What that means is if my rentals are worth $2M but I have $1.2M in loans that is a worth of $800k.

    This can vary but more LLC's means a lot more money on tax returns etc and bank account fees and management internally. I am reducing my number of entities as it gets too much

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