Simple LLC or Series to start out?

Question

Hi,

My brothers and I are starting to invest in real estate (TX), we have 4 houses and would like to move them into an LLC for protection/anonymity.

Would a Series LLC be best? Or do people generally just put them all in one simple LLC to start out?

We're also wondering if we should use a holding company in WY for the anonymity.Thanks for you help! This is tough one!

Jon Kelly · Answer

@Kelvin Scott either approach will work.

I'm of the mindset to keep it simple in the beginning. Once you have 10-20+ properties then you can consider alternative strategies.

Simple LLC and umbrella insurance policy works for most.

Nathan Gesner · Answer

Talk to an attorney.

Setting up an LLC takes money and time. It adds complications. There are rules to follow if you want the protections.

It may be cheaper and easier to get an umbrella insurance policy. There are tons of blogs, forum posts, and websites to read and learn about this. There's no black-and-white answer. Also remember that attorneys make money setting up LLCs, so they are always going to recommend you have them!

Chris Seveney · Answer

Unless you think you will be as famous as Elon or Zuckerberg, no reason to do an anonymous LLC, if someone wants to find you they will anyways, its just a lot more work registering and filing taxes in different states for the LLC. In regards to type of LLC, that really is a personal decision if you want one, a series or none at all. I recommend reviewing this with your CPA and your attorney and get insights from them. The question I always ask my attorney is what types of asset protection does a LLC provide - meaning what could I get sued for that would not be covered under my umbrella insurance policy.