Want to purchase SFH rental properties out of state (live in NJ) and want safe asset protection in affordable fashion without setting up an LLC for each property and heard about series LLC with "child" LLC's for each property in the parent series LLC. Has anyone heard about whether this is a reasonable approach? (The properties are not all going to be in states that recognize series LLC's)
First of all I'm not an attorney and this is my personal understanding of the subject.
In theory there is no difference between different LLCs and a serie LLC (except the cost and the fact that only a few states are offering it yet).
However, series LLC are a relatively new animal in the arena and I am not sure that a lot of case law have been settled yet. Until it strength is fully tested in court, one may believe that there could be some technicalities that would make them weaker in some aspects. Until these glitches and appropriate fixes are found, I wouldn't like to be one of these test cases.
Thomas L. Google llc university. Read through the costs to maintain one year to year and see what r costs to make one.
I am making an llc for the state my rentals are in. That llc holds the title. That llc is then owned by a holding company llc. That’s it.
No series llc (my cpa doesn’t like those) and no multiple llcs or one per property.
Everything I’ve read also says it’s better to register one in the state you’re in vs registering as a foreign one
@Caleb Heimsoth How many rentals are you planning in keeping in one LLC, and are you making one for each state you own a property (if in different states)? I also seem to have read somewhere that if LLC not properly setup or managed? could not offer proper protection and, therefore, should be done through attorney. What are your thoughts?
@Thomas L. I’ll have one llc per state I own in. I could have 20 rentals In one state it’ll all go In the same llc if they’re residential. (Commercial
Likely requires own llc)
You’re probably talking about piercing the veil. You’ll likely do this at some point on your own. I wouldn’t worrry too much about that . I won’t use an attorney to set up single memrbrr llc. Too expensive