Series LLC vs LLC

OP

Investor · Columbia, MD · Member since 2018 · 11 posts · 1 vote

P.S. — If anyone has experience specifically transferring property held in a fideicomiso into an LLC (or structuring it for better protection/tax purposes), I'd love to hear how you handled it!

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Robby SanchezPro Member

Contractor · Austin, TX · Member since 2022 · 110 posts · 40 votes

1y

Quote from @Natasha Onochie:

Hey BP Community!

Super excited — I just closed on my first investment property (in Mexico)! I’m still in the process of finding a solid business/tax attorney, but figured I'd ask for some advice here in the meantime.

I've seen a lot of investors recommend setting up a separate LLC for each property. I recently learned about Series LLCs too, and it seems like it could be a better long-term setup for me. I already have an LLC that I formed last year with the goal of using it for real estate investments. Now I'm thinking about converting it into a Series LLC.

When I bought the Mexico property, I purchased it under my personal SSN through a fideicomiso, as required under Mexican law. Now I'm wondering — should I transfer the ownership into my LLC? And if so, what's the best way to structure that (especially with the international piece involved)?

Would really appreciate any advice, experience, or things to watch out for!

Yeah im also curious. From what I understand, putting your property in an LLC is always recommended due to asset protection if you were to get sued, they wouldnt be able to touch the property in most cases. I think it depends on the amount of risk you're ok with in the end. I own a duplex and a SF and both are under my name. I've thought about putting them into an LLC but I just don't think its practical financially for me. LLC cost money and effort to keep active- yearly fees, registered agent fees if you decide to use one and then there's all the paperwork that has to be done every year-income reports, state requirements etc. But there are benefits as well. Just a matter of weighing the pros and deciding if its something you want to do. When I buy my next property ill probably place all 3 under a series LLC but right now im comfortable with the risk.

[email protected]510-736-8429

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Natasha Onochie
Member since 2025 · 3 posts · 0 votes
1y
Quote from @Robby Sanchez: I’m leaning towards placing it under my llc. I have my entity registered in WY with a Registered Agent. The annual fees, etc have been minimal. So may be something to consider once you acquire property #3.

Quote from @Natasha Onochie:

Hey BP Community!
Super excited — I just closed on my first investment property (in Mexico)! I’m still in the process of finding a solid business/tax attorney, but figured I'd ask for some advice here in the meantime.

I've seen a lot of investors recommend setting up a separate LLC for each property. I recently learned about Series LLCs too, and it seems like it could be a better long-term setup for me. I already have an LLC that I formed last year with the goal of using it for real estate investments. Now I'm thinking about converting it into a Series LLC.

When I bought the Mexico property, I purchased it under my personal SSN through a fideicomiso, as required under Mexican law. Now I'm wondering — should I transfer the ownership into my LLC? And if so, what's the best way to structure that (especially with the international piece involved)?

Would really appreciate any advice, experience, or things to watch out for!

Yeah im also curious. From what I understand, putting your property in an LLC is always recommended due to asset protection if you were to get sued, they wouldnt be able to touch the property in most cases. I think it depends on the amount of risk you're ok with in the end. I own a duplex and a SF and both are under my name. I've thought about putting them into an LLC but I just don't think its practical financially for me. LLC cost money and effort to keep active- yearly fees, registered agent fees if you decide to use one and then there's all the paperwork that has to be done every year-income reports, state requirements etc. But there are benefits as well. Just a matter of weighing the pros and deciding if its something you want to do. When I buy my next property ill probably place all 3 under a series LLC but right now im comfortable with the risk.

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Robby SanchezPro Member

Contractor · Austin, TX · Member since 2022 · 110 posts · 40 votes

1y

@Natasha Onochie yeah, probably something ill end up doing.

[email protected]510-736-8429

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Steve K.

Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes

1y

Personally I think setting up an LLC for just one property is overkill and unnecessary, especially because many investors handle their LLC's in such a way that it makes them completely useless anyway (not having a separate bank account for the LLC, co-mingling business/LLC funds with personal, having insurance policy or mortgage in your personal name, not treating the LLC like it is it's own separate business, a sole-owner LLC where it's obvious you're the owner won't really help in a lawsuit anyway, etc.). A series LLC would be extra unnecessary IMO. Most of the time a robust umbrella insurance policy should suffice.

Additionally, I don't think an LLC is even appropriate here because you technically don't own the property. A fideicomiso is like a bank trust. The bank holds the legal title and you are the beneficiary of the fideicomiso/trust because you own the rights to it. In an LLC, the members are the legal owners. They are different ownership structures. So I don't see the benefit of adding an LLC to the mix here, and definitely not a series LLC. Waste of time and money IMO. But you might want to talk to a professional who specializes in legal structures to be sure.

Where is the property in Mexico? Me encanta Mexico.

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Natasha Onochie
OP
Investor · Columbia, MD · Member since 2018 · 11 posts · 1 vote
1y
Quote from @Steve K.: I agree, there isn't a point of having an LLC if you aren't going to treat it as seperate from your personal. Thank you for sharing your thoughts! Its in Playa del Carmen :-)

Personally I think setting up an LLC for just one property is overkill and unnecessary, especially because many investors handle their LLC's in such a way that it makes them completely useless anyway (not having a separate bank account for the LLC, co-mingling business/LLC funds with personal, having insurance policy or mortgage in your personal name, not treating the LLC like it is it's own separate business, a sole-owner LLC where it's obvious you're the owner won't really help in a lawsuit anyway, etc.). A series LLC would be extra unnecessary IMO. Most of the time a robust umbrella insurance policy should suffice.

Additionally, I don't think an LLC is even appropriate here because you technically don't own the property. A fideicomiso is like a bank trust. The bank holds the legal title and you are the beneficiary of the fideicomiso/trust because you own the rights to it. In an LLC, the members are the legal owners. They are different ownership structures. So I don't see the benefit of adding an LLC to the mix here, and definitely not a series LLC. Waste of time and money IMO. But you might want to talk to a professional who specializes in legal structures to be sure.
Where is the property in Mexico? Me encanta Mexico.

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Laura Navaquin

Investor · Member since 2024 · 83 posts · 58 votes

1y

Hi Natasha,

Congratulations on closing on your first investment property in Mexico.....that’s such an exciting milestone!

Hang with me here, this is long. In regards to your questions about structuring your investment and LLC, it's great that you're already thinking strategically. Using a separate LLC for each property is a common approach to limit liability, and a Series LLC can be an excellent choice for long-term scalability, especially if you plan to acquire multiple properties in different markets. It offers flexibility by allowing you to establish multiple "cells" under one parent LLC, which can reduce the complexity and cost of managing several separate entities.

As for your Mexico property, the issue of ownership through a fideicomiso adds an extra layer of complexity due to Mexican law, which requires foreigners to hold property within a trust structure when purchasing in restricted zones. You can absolutely transfer the property into your LLC; however, there are a few key things to consider:

Fideicomiso and Ownership Transfer: The fideicomiso must typically be in your personal name, and it may require you to set up a new trust to transfer the property into your LLC, which could involve additional fees and paperwork. You'll want to work closely with a qualified attorney who specializes in Mexican real estate law to ensure the trust agreement accommodates the LLC structure.
Tax Implications: The international aspect of the property could impact both U.S. and Mexican tax filings. In the U.S., your LLC would need to comply with IRS reporting requirements, and the income from the property would be taxable. A tax professional who understands both U.S. and Mexican tax laws will be crucial in ensuring you're optimizing your tax strategy.
Estate and Succession Planning: One additional benefit of the Series LLC structure is that it could streamline your estate planning for your properties. As you scale, this could help you organize your investments in a way that minimizes complexity and potentially reduces your estate tax exposure.

My recommendation would be to consult with both a business/tax attorney and a real estate attorney who has experience with cross-border investments.( I have a referral I can make to you if needed) They'll be able to help you navigate the specifics of transferring the property and structuring it for long-term success. If you haven't already, you might also want to look into establishing a tax-efficient structure for your income from the property and potential repatriation of funds.

Let me know if you’d like any further guidance, and I’m happy to help in any way I can as you continue growing your portfolio!

Best,
Laura

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Natasha Onochie
Member since 2025 · 3 posts · 0 votes
1y
Quote from @Laura Navaquin: Thank you so much for this thorough explanation and your willingness to help. Because I didn’t start this investment under an LLc as I should have, I’m going to keep it in my personal name. If I pursue and additional property investments in MX i’ll explore transferring ownership then. I would love if your could kindly share your referral as well as share more insight on establishing a tax-efficient structure for income from the property and potential repatriation of funds. Feel free to message me directly. Hope all is well :-)
Hi Natasha,

Congratulations on closing on your first investment property in Mexico.....that’s such an exciting milestone!

Hang with me here, this is long. In regards to your questions about structuring your investment and LLC, it's great that you're already thinking strategically. Using a separate LLC for each property is a common approach to limit liability, and a Series LLC can be an excellent choice for long-term scalability, especially if you plan to acquire multiple properties in different markets. It offers flexibility by allowing you to establish multiple "cells" under one parent LLC, which can reduce the complexity and cost of managing several separate entities.

As for your Mexico property, the issue of ownership through a fideicomiso adds an extra layer of complexity due to Mexican law, which requires foreigners to hold property within a trust structure when purchasing in restricted zones. You can absolutely transfer the property into your LLC; however, there are a few key things to consider:

Fideicomiso and Ownership Transfer: The fideicomiso must typically be in your personal name, and it may require you to set up a new trust to transfer the property into your LLC, which could involve additional fees and paperwork. You'll want to work closely with a qualified attorney who specializes in Mexican real estate law to ensure the trust agreement accommodates the LLC structure.

Tax Implications: The international aspect of the property could impact both U.S. and Mexican tax filings. In the U.S., your LLC would need to comply with IRS reporting requirements, and the income from the property would be taxable. A tax professional who understands both U.S. and Mexican tax laws will be crucial in ensuring you're optimizing your tax strategy.

Estate and Succession Planning: One additional benefit of the Series LLC structure is that it could streamline your estate planning for your properties. As you scale, this could help you organize your investments in a way that minimizes complexity and potentially reduces your estate tax exposure.

My recommendation would be to consult with both a business/tax attorney and a real estate attorney who has experience with cross-border investments.( I have a referral I can make to you if needed) They'll be able to help you navigate the specifics of transferring the property and structuring it for long-term success. If you haven't already, you might also want to look into establishing a tax-efficient structure for your income from the property and potential repatriation of funds.

Let me know if you’d like any further guidance, and I’m happy to help in any way I can as you continue growing your portfolio!

Best,
Laura
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Tyler Palmer

Investor · Cleveland, OH · Member since 2025 · 23 posts · 34 votes

1y

Congrats on closing your first investment property. Very exciting!!:)

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Natasha Onochie
Member since 2025 · 3 posts · 0 votes
1y
Quote from @Tyler Palmer: Thank you Tyler!!

Congrats on closing your first investment property. Very exciting!!:)

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Natasha Onochie
OP
Investor · Columbia, MD · Member since 2018 · 11 posts · 1 vote
1y
Quote from @Tyler Palmer: Thank you so much Tyler!

Congrats on closing your first investment property. Very exciting!!:)

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Series LLC vs LLC

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