LLC Set Up (Holding + Subsidiaries)
Newbie over here looking for a CPA/Lawyer to help set up my holding company in Wyoming and then two subsidiary LLCs - one in Texas and one in New York. I had a call with Prime Corporate Services but was not sold on their services given a poor interaction I had with the closing salesperson. They wanted to me quickly sign off on the documents without giving me a chance to read it. And when I asked for a day to read it over, they told me they had to cancel the transaction because it had to be signed by the end of the day. That made my spide-y senses go off so I decided to not move forward with them. Then I went online to read reviews and there were quite a few complaints out there! (Probably should have started there). If anyone knows of any investor friendly CPAa/lawyers who can help me get set up, that would be greatly appreciated!
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
I have a attorney here in Austin i'm happy to connect you with
Hi Gloria! I'm sorry you had such a poor experience with that place. It's so important to be comfortable with the people you work with. I had a great experience with Royal Legal Solutions (located in Austin). I actually got to talk to an attorney and not just the salesperson. It made the whole experience so much better because the attorney walked me through each part of the transaction. I'll send you a message with my contact there.
Quote from @Gloria Odogbili:
You can set up a Wyoming LLC online for very cheap. I used a registered agent website to make it even easier and the process cost $200. That includes tax ID and the necessary forms for opening a bank account. I used https://www.bestwyomingregiste...
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Quote from @Gloria Odogbili:
Newbie over here looking for a CPA/Lawyer to help set up my holding company in Wyoming and then two subsidiary LLCs - one in Texas and one in New York. I had a call with Prime Corporate Services but was not sold on their services given a poor interaction I had with the closing salesperson. They wanted to me quickly sign off on the documents without giving me a chance to read it. And when I asked for a day to read it over, they told me they had to cancel the transaction because it had to be signed by the end of the day. That made my spide-y senses go off so I decided to not move forward with them. Then I went online to read reviews and there were quite a few complaints out there! (Probably should have started there). If anyone knows of any investor friendly CPAa/lawyers who can help me get set up, that would be greatly appreciated!
Before starting all of these entities, what type of scale and what type of assets are you buying? For example if you are in TX you can just do a series LLC. I see way too many people spend thousands of dollars setting up these crazy entity structures thinking they are Jeff Bezos but at the end of the day there is no such thing as anonymity and asset protection is based significantly more on you and how you manage than any entity structure.
For example, the easiest way to break any LLC protection is self-managing your properties.
Thank you so much! I’ll be in touch!
Quote from @Kirsten M.:
Hi Gloria! I'm sorry you had such a poor experience with that place. It's so important to be comfortable with the people you work with. I had a great experience with Royal Legal Solutions (located in Austin). I actually got to talk to an attorney and not just the salesperson. It made the whole experience so much better because the attorney walked me through each part of the transaction. I'll send you a message with my contact there.
Thanks for that, Chris. I’m investing in multi-families in San Antonio and Austin. I’m doing the stacking method so will start off self managing at first and once I scale a bit more will hire a property manager.
Hey Gloria - I'm an attorney in Austin and I am happy to help if I can. I don't have a salesperson so you always "talk with the lawyer." Real estate investors often want to set up an LLC to "protect their assets," but the lawyers and the investors never discuss what that actually means. Sometimes an LLC is the right answer, but not always. I have litigated/defended premises liability cases (death/injury at rental property) in multiple states, and I use this experience to help my clients understand what really happens when something goes wrong. There are many lawyers on Bigger Pockets and I am sure we can all address your questions. But before you get into a complex web of LLCs, Series LLCs, and entities in states where you have no connection, please ask the lawyer (not the salesperson) for their personal experience litigating the cases (that's why you are setting this up, right?). What were the claims? Who were the defendants? What was the discovery like and what rulings did the court make on any discovery battles. THEN ask how the entity structure they are recommending worked in those situations or would have worked... and why.
Makes sense. Super helpful, thank you!
Quote from @Mitchell Zoll:
Hey Gloria - I'm an attorney in Austin and I am happy to help if I can. I don't have a salesperson so you always "talk with the lawyer." Real estate investors often want to set up an LLC to "protect their assets," but the lawyers and the investors never discuss what that actually means. Sometimes an LLC is the right answer, but not always. I have litigated/defended premises liability cases (death/injury at rental property) in multiple states, and I use this experience to help my clients understand what really happens when something goes wrong. There are many lawyers on Bigger Pockets and I am sure we can all address your questions. But before you get into a complex web of LLCs, Series LLCs, and entities in states where you have no connection, please ask the lawyer (not the salesperson) for their personal experience litigating the cases (that's why you are setting this up, right?). What were the claims? Who were the defendants? What was the discovery like and what rulings did the court make on any discovery battles. THEN ask how the entity structure they are recommending worked in those situations or would have worked... and why.