Topics to discuss with an attorney

3 Replies

My wife and I are meeting with our attorney tomorrow afternoon to discuss investment properties. We own the following:

(1) LLC that controls all rental income-we have 7 (wife and I are partners with each other-2017)

(1) LLC s-corp in her name (Tax and bookkeeping office-2014)

(1) LLC s-corp in her name (She's also a cosmologist-2005)

(1) LLC s-corp in my name (I own the salon she works for-2017)

I also work a regular w2 job.

Hope your not confused yet! We're meeting with the attorney because were purchasing other investment properties. We want to discuss the legalities of having separate LLCs for each property. Also, we're looking at the long term approach, so we'll be discussing a Will. We have 4 kids so having everything lined up is our priority to alleviate any future headaches. I'm composing a list of topics that we should discuss so we can utilize our time efficiently during our meeting. What all topics / questions should be discussed?

So far I have come up with:

-Creating a Series LLC (if South Carolina allows)

-if not, whats the best legal protection route since we have so many moving parts

-Costs associated with setting up entities

-What options do we have other than an LLC, maybe Trusts, additional insurance?

-Will / living Will. 

We are still very new investors and want to make sure are covered on all aspects. Another reason for going to the attorney is because we are getting about a $200K business LOC that we are in the closing stages on and will be investing it….ONLY when the numbers fit. We are VERY conservative with our numbers. We appreciate any and all feedback. Thanks

@Reggie Rearden   A LOT to unpack there.  :) 

I think you are on the right track with questions, but the big thing I noticed is you have 4 children so #1 on your list of things to do with your attorney is setup a revocable living trust first and foremost.  All your other buckets need to trickle down to that and however you end up slicing and dicing all your entities is going to be risk/cost analysis you and your attorney (and insurance broker) should figure out. 

You should be able to setup series LLCs from Wyoming or Delaware (I think) even if you are in another state.  Basically, there is some shell game you play where there is a service in those states you pay that provide local contact for the remote entity...or something like that.  Your attorney should know how it works.

Best of luck to you and your family! 

Depending on the age of your children a trust is very important.  If something happens to you, it woud not be good for each kid as they turn 18 to get a lot of money.  What would you have done when you turned 18 if you had no parents and $100K?  My guess is that it would involve a fast car and a lot of alcohol and girls if possible.  Have someone else in charge of the money and maybe get half at 25 and the other half at 30 or 35.  Make them get an education of some sort, and make them learn to earn money.  Maybe even an earning trust where they only get money from the trust based on how much they earned.