Ok I am going to start creating a few letters of intents with hopes of getting a deal under contract... however I want some form of privacy and protection, if I proceed with purchasing these properties, asset protection, etc.
I came across this forum and saw this strategy of creating a series of llc's to protect each individual asset under a main operating llc.
- referencing a comment made by: Bradley B. Clark here:
I wonder if you are buying buy and hold properties in more than one state,
for instance like Texas and California...
Do I have to create a main llc in both states, do I need separate eins for each llc? in each state? or.. is that just madness..lol
Anyone have current experience in this and advice?
If you want protection get a good insurance policy.
I did read up on that as well and definitely want to implement it all.
Someone mentioned via that forum that its sort of like a castle and a moat..
interior : your properties,llc
castle walls/moat: legal and financial advisers,etc (such as attorneys and accountants)
archer in the watchtower: insurance
all mine are just 1 state. we have one llc and then each one is in it's own llc. so i have 12 llcs and then one general one.
Thanks for the response!
So great to hear from someone who has this type of setup because I feel it would be the best route for me too. I'm so curious about this since I want to take the right steps.
So upon your initial setup of your business.. the main llc formation started first before you bought your properties and how did you compensate for the cost of each individual llc formation? Another concern I have is the insurance, do you have separate insurance for each individual llc or is it just for the main llc which holds all the individual llc's?
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