Rent payments cash flow....

[Carlos C.]

Hi to all, 

Im planning on opening a Wyoming LLC as a holding company, then open an LLC for each rental that we have in Kansas and Missouri.

I read several articles and would like input on the way rental payments should flow from the tenants to me.

1- The tenant deposits rent in the account of the LLC that owns the RE property.

2- The rent money is transfer to an account in the name of the Wyoming holding LLC

3- Any money that I need to pay for personal expenses is transfer from the Holding LLC account to my personal account.

Question:

1- Do I need to move money to the holding company... then to my personal account.. or can I move it from the Rental account to my personal account?

2- How do I open a Wyoming account? Do I need to open one in Wyoming? or just an account using the EIN number of the Wyoming LLC?

3- Is this actually necessary? Im trying to create a "paper" trail... but actually all will be done electronically... transfers between bank accounts... hopefully in the same bank. 

NOTE: The main reason Im thinking on opening a holding company in Wyoming is for the Charging Order protection advantages... KS and MO don't provide the same advantages.

Thanks.

[Scott Smith]

@Carlos C., I have seen investors use the Wyoming LLC as a shell company to to all transactions and property management for series LLC structures which own the properties. This use separates risk, since the public facing LLC collects and passes payments to the holding LLCs. Series LLCs are great structures to hold investments, and can be structured for anonymity to lower the potential for litigation.  The shell company has no real equity, so plaintiffs settle for insurance awards.  A CPA can explain payments, but generally the investment companies have property management agreements with the shell company to pay all taxes, insurance and operational expenses.  Enjoy investing!