How to proceed with llc

Question

Facts / current setup

• I formed a Wyoming LLC (recently) and I currently own/operate that entity.
• I live in New York (NY).
• I am under contract for a property in Ohio (OH) and expect to close there.
• I will need a registered agent in Wyoming and in Ohio (and I know I must maintain a registered agent in each state where an entity is registered).

I formed a Wyoming LLC (recently) and I currently own/operate that entity.

I live in New York (NY).

I am under contract for a property in Ohio (OH) and expect to close there.

I will need a registered agent in Wyoming and in Ohio (and I know I must maintain a registered agent in each state where an entity is registered).

Options I’m considering

• Foreign qualify the existing Wyoming LLC in Ohio (register the WY LLC as a foreign LLC in OH and hold the property in the WY LLC).
• Form a new Ohio LLC to hold the real estate (Ohio LLC holds the property), with the Wyoming LLC as the member/parent owner of the Ohio LLC.
• Form a new Ohio LLC and dissolve the Wyoming LLC (i.e., replace the WY LLC with a domestic Ohio LLC that holds the property).
• Trust structures — possibilities include:

Trust directly owns the property, and the ohio llc is the trustee.


Wyoming LLC is the beneficiary for the trusts.How should i move forward? Thanks
• Trust directly owns the property, and the ohio llc is the trustee.
• Wyoming LLC is the beneficiary for the trusts.
• 
• How should i move forward? 
• 
• Thanks
•

Foreign qualify the existing Wyoming LLC in Ohio (register the WY LLC as a foreign LLC in OH and hold the property in the WY LLC).

Form a new Ohio LLC to hold the real estate (Ohio LLC holds the property), with the Wyoming LLC as the member/parent owner of the Ohio LLC.

Form a new Ohio LLC and dissolve the Wyoming LLC (i.e., replace the WY LLC with a domestic Ohio LLC that holds the property).

Trust structures — possibilities include:

• Trust directly owns the property, and the ohio llc is the trustee.
• Wyoming LLC is the beneficiary for the trusts.
• 
• How should i move forward? 
• 
• Thanks
•

Trust directly owns the property, and the ohio llc is the trustee.

Wyoming LLC is the beneficiary for the trusts.

How should i move forward?

Thanks

Michael Plaks · Answer

@Chaim Mal

In my personal opinion, you were sold snake oil and you want to buy even more of it (trusts).

Cut your losses by dissolving (or at least ignoring) these unnecessary structures and close on your property under your personal name. Unless there're some undisclosed legal complications that make such a complex setup justified. I'm not an attorney, so I don't have a valid legal opinion.

Michael Plaks · Answer

This is the first time you mentioned your reasoning - which is anonymity.  Your question should be restated as - how do I achieve anonymity buying a property in OH while I'm a NY resident?

I do not know the answer, and you may want to post this as a separate question on another thread.

Notice that two licensed attorneys on this thread already expressed their implicit agreement with my point that you don't need a complex entity structure such as LLCs and trusts.

Basit Siddiqi · Answer

You will want to create a new Ohio LLC.Ohio is transparent when you want to research ownership of an LLC.Wyoming is not tranparent.Therefore, if someone does a search of your Ohio LLC, They will know it is another LLC(I am not sure they can tell what state it is formed in.Wyoming will not provide your information if someone does an LLC search for your wyoming LLC.It is best to confirm the above with an attorney as this is my understanding but I haven't confirmed it in practice.

Stuart Udis · Answer

@Chaim Mal Anonymity does not prevent lawsuits. Sound operations are what prevents lawsuits. Whether your property is owned by a WY LLC or an LLC in another state, your name will be in the recorded mortgage which is public. Going back to what I originally shared  the most probably real estate conflicts to arise are: landlord/tenant; premises liability; title/property defect; performance/payment dispute. An LLC can provide benefits if managed correctly, but incorporating in WY adds no benefit from a practical standpoint.

I believe all real estate investors should learn the procedural steps of resolving disputes through court in the jurisdictions where their properties are located. With that knowledge investors can reverse engineer the operations and asset protection safeguards that will prevent those conflicts from arising or at worst favor the investor when the claims arise. It would also put an end to a lot of this WY, DE, NV, management entity nonsense.

Stuart Udis · Answer

Not a good sign when the New Yorker buying property in OH requires ChatGPT to make sense of their impractical entity formations. Attn. all investors: before spending money on entity formations/asset protection require  the service provider to explain how their recommended course of action will benefit you when the most probably real estate conflicts arise: landlord/tenant; premises liability; title/property defect; performance/payment dispute.

Jason Malabute · Answer

Honestly, it sounds like someone convinced you to overcomplicate your setup with a bunch of unnecessary layers like trusts. In most cases, these kinds of structures just make things harder without giving much benefit — unless there’s some legal reason we don’t know about.

If there isn’t, you might be better off just moving forward under your personal name. I’m not a lawyer, so I can’t speak to the legal side, but from a practical and tax perspective, simple is usually better.

Chaim Mal · Answer

@Michael Plaks thank you

Chaim Mal · Answer

@Jason Malabute unfortunately I am new and still learning. So yes that why I also came here to ask

Chaim Mal · Answer

@Stuart Udis the reason I would want an llc is so that my name isn't on the deed. my lender allows an llc to be named their so that is kinda the only reason I would want one.

orherwise what would you recommend unless it's simply just putting my name on the deed

How to proceed with llc

Facts / current setup

Options I’m considering

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