Entity - Legal and Tax Structuring

[Matt Homsy]

Hi all,

A San Francisco resident, I recently bought my 1st investment property out of state (an SFR) and anticipate buying future SFRs in a couple of other states going forward.

I have not set up any entity to this point and am wondering whether I should first consult accounting or legal advice regarding the optimal structure to use? My big question is should I set up a Series LLC in the state of California for all of my investment properties or should I set-up an LLC for all properties in each state I invest property in or some other type of structure?

Any general advice from similar experience and accounting or legal recommendations from folks would be greatly appreciated. 

Best,

Matt

[Gabe C.]

@Matt Homsy I am going through this as we speak and have a similar situation. I would definitely seek legal counsel, as you will get a ton of opinions (like this one!) on BP, and this is probably not an area where you can afford to make a mistake if something goes wrong. San Francisco has prohibitively expensive fees for LLCs and every state's protection laws are different. My attorney interviewed me for an hour to get my specific situation before recommending anything, and the recommendation was VERY specific to my situation. Nothing I ever would have deduced on my own or through forums. He's expensive as hell (the consult was free), but I don't sweat it because my mind is now at peace, and it's a one time fee. Just my $.02.