Good morning all. I am looking to set up a couple of LLC's along with learning more about CA trusts. Can anyone recommend a real estate and/or asset protection attorney in the greater San Diego area? Thanks!
I don't know any off hand. I used legal zoom to make my trusts and don't use LLC's here anymore as you really aren't that well protected. Also there is a $800 per year tax on LLC's, I pay $207 for a million dollar umbrella policy. From my standpoint that has me better protected.
Can you me why you think Trust provides better liability protection than LLC? I agree on the $800 - not great. I've heard similar logic used for umbrella policy - better use of your funds. That is yearly figure, correct?
No clue. I asked my attorney and they said I could still have someone go after me under my LLC so why not just be insured well enough that if they do. I'm covered.
The LLC tax here eats profits, I can have a legit umbrella policy for much less.
I'm only transitioning into trusts for anonymity so if you search my name on title nothing shows up.
As Tim G. mentioned, trusts only provide the anonymity but do not provide any asset protection. An LLC, when properly maintained, should provide you the protection you need to separate your personal assets from the ones with the LLC. It will need yearly maintenance including meeting minutes, operating agreements and a few other things in order to keep it up to date. Also, you need to be very careful that funds are not transferred incorrectly between personal and business, using business funds for personal use, etc. That is called piercing the corporate veil and can render the LLC useless. Just having an LLC and paying the $800 per year to keep it up do date does not protect you.
For me, I want to have my property management business in its own LLC (with a trust as the managing entity), my rehabbing business as a separate LLC (again within a trust) and then all of my properties that I take title to will be through a trust and then owned by the LLC. The reason for the trust is to keep my personal info off of public records and if I am doing any type of owner financing then it will help keep the sellers bank happy and hopefully reduce the risk of due-on-sale. So I am looking for the attorney to help me set up the trusts, LLC's and put together sales contracts, lease option agreements, subject-to and any other documents to make sure they are legal in California. I will also be a licensed salesperson so I want to make sure that all my t's are crossed so to speak.
I have a good company that I use. They are actually located in San Marcus. I'll PM you their contact info.
Thanks @Manny Gonzalez , I really appreciate it! I noticed you live in Poway, what a beautiful area! My son goes to school there, it is by far my favorite area so far.
I'm also looking for a good asset protection attorney in the San Diego.
And I'm a Bigger Pockets newbie. Does the "PM" in Manny's comment refer to a specific BP thing for contacting members, or does it just mean "I'll send you an email"?
Any California licensed attorney can help you form an LLC and draw up the operating agreement. I can make some recommendations if you're still looking for a legal advisor.
But beware that having an LLC or trust is in no way a guarantee that you won't be sued and held personally liable. And in the process you can make life more difficult and expensive by going that route.
I work with investors and landlords like yourself and specialize in the North County/Carlsbad and environs. Feel free to give me call if I can be of further assistance.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing