how to buy a house using an LLC that's owned by another LLC

how to buy a house using an LLC that's owned by another LLC

Member since 2020 · 24 posts · 8 votes

I have set up an LLC in Wyoming. According to various research I have done, if I want to buy a house in another state, say Virginia, I need to set up another LLC in Virginia. The WY LLC will be the member (owner) of the VA LLC. That's the only way to ensure anonymity. However, I am confused as how to sign the contract in VA.

If the VA LLC had been a "single layer" LLC, I would be on the filing as a member. So I would have signed the contract as "My own name, President, VA LLC". But since the only member of the VA LLC is the WY LLC, who can sign the contract as WY LLC? (The membership of WY LLC is anonymous - that's why I have the WY LLC in the first place.)

Anybody who had experience with this kind of Double LLC structure?

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    6y
    Anonymity is useful if you are extremely wealthy or a public figure, but there is a price to be paid.  Unfortunately, the firms that sell all these entities don't explain the cost / benefit of all the structure.

    If you really want to keep your name off all public records and contracts, you will need to give signing authority of your WY LLC to your attorney.  Then you get to pay them to sign on  your behalf.
  • Member since 2020 · 24 posts · 8 votes
    6y

    Greg, thank you for the input. I am going to use a real estate attorney locally in VA to help with the purchase contract, can he sign the contract representing the WY LLC, or do I have to find another attorney, licensed to practice in the state of WY, to sign the contract?

  • Member since 2020 · 24 posts · 8 votes
    6y

    I have a follow up question here: upon further research, it seems that VA LLC law is quite good already. You don't have to list members' names or addresses when filing, and it doesn't require an annual report. It also has good charging order protection. So do I need to bother with this dual layer LLC structure (by setting up the VA LLC as a subsidiary of the WY LLC)? If I just set up the VA LLC by itself, with me and my wife as members, our information will not show up in any public record. Why would I want to pay extra to set up another WY LLC?

    Anybody out there with insight on this matter or has experience with VA LLC? Thanks.

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