@Jonroy Connell "efficient as possible" is buy in your own name and get a nice insurance policy. When you get multiple properties get an umbrella policy. Once you have more success then think about LLCs. I really think that most people promoting LLCs are selling something. I agree that the "wisdom" sounds good but it is so burdensome that people never make it to actually buying a property.
Wyoming does offer anonymity but 99.95% of the people that open LLCs for investing never get to the point that it makes a hill of beans of difference.
In your shoes, I would find a property and get the financing lined up and then worry about asset protection or whatever. While I know the "wisdom" is to get the structure in place and then get property and planning is the way to start, there is much greater danger in never getting off the ground than in picking the "wrong" way and losing everything.
@Jonroy Connell your question is a bit vague or at least very general in nature. If you could spell out the details of what you are trying to do and what you hope that your LLC will do for you then you might get more feed back. The search feature is sometimes helpful as well. Questions about LLCs and out of state LLCs are posted often so if you read through a few forum posts or even a couple blogs you can probably find your answer or refine your question enough that someone can help you out.
Yes. It is. The big picture is to have a LLC for each individual property that I intend to purchase, and one LLC to act as an umbrella over all of them, not sure if this is feasible or not. This is what is in my head but I 1: don't know if it is necessary, 2: too much of a financial burden for negligible increased protection.
Now back to my titled thread. Is there that much of a benefit of opening my LLC's in a place like Wyoming and Nevada? Are there additional cost that outweigh those benefits because I am doing business as a "foreign" entity.
Looking to be as efficient as possible. There are lots of threads. It can get overwhelming at times as it has me scrambling in one direction then another.
@Jonroy Connell "efficient as possible" is buy in your own name and get a nice insurance policy. When you get multiple properties get an umbrella policy. Once you have more success then think about LLCs. I really think that most people promoting LLCs are selling something. I agree that the "wisdom" sounds good but it is so burdensome that people never make it to actually buying a property.
Wyoming does offer anonymity but 99.95% of the people that open LLCs for investing never get to the point that it makes a hill of beans of difference.
In your shoes, I would find a property and get the financing lined up and then worry about asset protection or whatever. While I know the "wisdom" is to get the structure in place and then get property and planning is the way to start, there is much greater danger in never getting off the ground than in picking the "wrong" way and losing everything.
@Jonroy Connell, I live in WY and am an attorney. I would never dream of having a separate LLC for each property. I currently have about 30 to 35 doors and own maybe 15 to 20 separate buildings locally and the idea of even 20 separate LLCs scares me. The paperwork and overhead would kill me let alone the time. if my buildings were $500K or million dollar muti units maybe. Each time I have done a joint venture I use a separate entity, but otherwise no. Good insurance yes, even a single LLC, but not one for each house. Having all the separate LLCs would aid you in protecting your investment if you manage them all correctly, but your profit and time will be hit hard.
Both responses very much appreciated. As I'm very green in this area I don't want to hamstring myself. I will continue my research. Gentlemen. Thank you.