Flipper/Rehabber · Los Angeles, CA · Member since 2018 · 61 posts · 11 votes
Hi BP fam,
Could someone outline for me what the pros and cons are of using an anonymous trust as a holding company for long-term buy & holds/rentals vs a WY LLC (with a nominee manager) ? Thanks in advance.
Attorney · Austin, TX · Member since 2019 · 128 posts · 98 votes
7y
@Seyi A. Hey Seyi, to start with, I wouldn't use a WY LLC simply because they're more expensive to maintain than others, but then a trust would work well WITH any LLC. The added power of anonymous land trusts is that these Anonymous Trusts can own LLC's and real estate. An LLC typically must disclose the members of the LLC on the filing instruments called the Articles of Incorporation. However, the member listed on the filing can be an Anonymous Trust so it does not have to be your name. Since the Anonymous Trust is a private document and it is not filed with the State, anybody researching the Owner or Beneficiary of the Trust will be unable to find that information in the public records(that's the advantage to owning an LLC in a trust). Similarly, with the trusts that hold the land, anyone researching the owner of the real estate asset by searching the County Clerk records will only find the name of the Anonymous Land Trust. Since the Owner of Trust and the beneficiary is not registered with the state, they cannot find out that the Series LLC is the beneficiary of that Trust. If they wanted to fight this in court it would take again substantial amount of more time, billable ours, labor, manpower and mone
Feel free to connect with me if you have questions.