Legal Entity Structure Advice for New Investors

Legal Entity Structure Advice for New Investors

Investor · Boston, MA · Member since 2019 · 9 posts · 9 votes

Hello All,

  I currently own two doors in my home state of Massachusetts but am under contract for 2 more doors (single family houses) out of state (Oklahoma).  I am seeking feedback on what legal structures I should hold my properties in as I begin to accumulate a portfolio.  I know there are both tax and legal aspects to consider.  What paths have you all taken?  I am grateful for all feedback received.  Thank you very much!

-Ryan

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  • Investor · Springfield, MA · Member since 2017 · 31 posts · 11 votes
    6y

    Hi Ryan/fellow MA investor,

    Based on your post which states - "as I begin to accumulate a portfolio" , It is clear that you plan to buy several properties over the course of months/years. I would strongly encourage you to form a Holding company( preferably a Wyoming LLC) and form baby LLCs under the WY LLC. You need atleast 1 LLC in each state you hold properties. Yes, it will cost a little more but it IS worth it. Cost $100 to form WY LLC and $50 annual. MA cost $520 to set up and $500 annual fee - you can do it yourself. :)

    Best,

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