Advice on LLC structure

[Srinivas Reddy]

Hello everyone, I am relatively newer on Bigger Pockets and am looking for advice on LLC structure.

I saw in another post a few years back that the general recommendation is to have a series LLC that owns the individual LLC's. I own 3 properties in 3 different states and in the process of acquiring 1 more in a different state. In this case, should the series LLC be incorporated in my primary residence state with individual LLC's in the respective states where my investment properties are based? Or is there different recommendation on the structure?

[Greg Scott]

There is no perfect structure.  Each has benefits and downsides.  For example, I have heard some attorneys say they do not like series LLCs because the case law is not as solid. I'd talk with a lot of different people including other investors, your CPA, your estate-planning attorney, and others. 

Hint: If you talk to an attorney that specializes in creating LLCs for real estate investors, you will be sold the deluxe package. You will probably be told to have one LLC for each property, plus one LLC that owns all the LLCs and then a separate management LLC. Ideally all these LLCs should be in a state like Wyoming, Alaska, or Delaware. But, don't worry because they have connections there. For a small extra fee they can file the annual meetings for your each year. For another small fee, they can act as your resident agent each year. For another small fee, they can keep your state entity filings up to date. Doing the accounting for all those entities is up to you.

[Chris Seveney]

Quote from @Srinivas Reddy:

Hello everyone, I am relatively newer on Bigger Pockets and am looking for advice on LLC structure.

I saw in another post a few years back that the general recommendation is to have a series LLC that owns the individual LLC's. I own 3 properties in 3 different states and in the process of acquiring 1 more in a different state. In this case, should the series LLC be incorporated in my primary residence state with individual LLC's in the respective states where my investment properties are based? Or is there different recommendation on the structure?

 I always do it in my home state and register as a foreign entity. But speak to your tax professional and your attorney on what is the best course of action FOR YOU. What is good for you may not be good for me and vice versa. 

[Srinivas Reddy]

Thank you, Greg and Chris, for your suggestions.

Any idea on which specific type of attorneys to contact and leverage for creating LLC? Would it be any real estate attorneys or should I look for another level of specialization?
Also any referrals for good CPA’s will be appreciated, preferably based on your own experience.