Wyoming LLC for Rental Property

6 Replies

I own 1 rental property in California, I want the charging order protection of Wyoming LLC,

For my rental property :

I have been suggested to set up a California LLC with the member of that LLC be the Wyoming LLC, both qualified to do business in California

I also have been suggested to do only a Wyoming LLC , qualified to do business in California

is the first option affording more protection overall ? lots of conflicting advice.

Have you considered the cost of having an extra LLC in the business? I think it is $800 or more tax every year on every LLC you own regardless of if it is in CA or not.

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@Brent Crude

It's hard to say without looking at exactly what you want to do. But as a general rule, using a "Matryoshka doll" approach to LLCs do not always lead to better protection. It could even make it worse in some cases. 

For example, I've seen some DIY folks stack five single-member LLCs together. What they don't always realize is that having five LLCs stacked on top of each other is meaningless if there are ways to hold you personally liable as the sole member. Maybe it causes a slight annoyance to a potential plaintiff or creditor but nothing that an average, competent lawyer hasn't dealt with. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Anderson doesn't do litigation. Litigators who know their stuff tell me they can pierce any LLC in CA. Anderson is trying to do something ... but I don't know if their strategies actually work as marketed.