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.
the extra cost is no problem, my only concern is that the 2 llcs have overall more protection in California than just the Wyoming LLC by itself,
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.
OK, but from what I understand Wyoming protects single LLC owners ,
would you recommend I add another partner,
Have you ever heard of Anderson Business Advisors? They offer some insight into this topic. I suggest their YouTube channel.
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.