CPA Help! Properties in Multiple States
Hey Yall - I live in California and own properties in Ohio and Tennessee. Definitely need some help.
Trying to figure out the holding company/land trust/umbrella policy/LLC conversation.
Theoretically, I'm thinking a general holdings company, and then an LLC per state.
Anyone in here who can help? Or refer me to anyone?
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Originally posted by @Austin Largusa:Hey Yall - I live in California and own properties in Ohio and Tennessee. Definitely need some help.
Trying to figure out the holding company/land trust/umbrella policy/LLC conversation.
Theoretically, I'm thinking a general holdings company, and then an LLC per state.
Anyone in here who can help? Or refer me to anyone?
An umbrella policy would never hurt as it is so cheap and totally worth it. I pay $23 a month for $1M. Peach of mind.
Regarding the LLC: Holding company really helps with your tax compliance fees by reducing the filing requirement when you have partners/owners. However, we need to look into each state's rules because states like TN will require you some type of filing even for SMLLC. There is a lot to uncover with more detail.
I agree with what the CPA said, but I am also a firm believer to KISS (Keep It Simple Stupid) meaning I am 100% against LLC's due to the fact that they cost you whatever they cost for fees plus additional costs for accounting and LLC's do not provide the protection against lawsuits because when you make a mistake, and you will, you pierce the corporate veil rending the LLC void and null. LLC's do not provide one bit of protection against lawsuits inside or outside the LLC because when someone sues you and wins that person can get a Charging Order where they can get your personal assets in other LLC's. Another problem with LLC's is there may be a lot of difficulty getting the tax benefits of transferring properties to domestic partners and heir because the properties are owned by the LLC and not you. This may not be true for many cases, but an issue to be concerned about, or at least, know about. But...then again, that is what complicates LLC's and I prefer to 'KISS'.
Originally posted by @Account Closed:I agree with what the CPA said, but I am also a firm believer to KISS (Keep It Simple Stupid) meaning I am 100% against LLC's due to the fact that they cost you whatever they cost for fees plus additional costs for accounting and LLC's do not provide the protection against lawsuits because when you make a mistake, and you will, you pierce the corporate veil rending the LLC void and null. LLC's do not provide one bit of protection against lawsuits inside or outside the LLC because when someone sues you and wins that person can get a Charging Order where they can get your personal assets in other LLC's. Another problem with LLC's is there may be a lot of difficulty getting the tax benefits of transferring properties to domestic partners and heir because the properties are owned by the LLC and not you. This may not be true for many cases, but an issue to be concerned about, or at least, know about. But...then again, that is what complicates LLC's and I prefer to 'KISS'.
So all of your properties are in your personal name?