Originally posted by @Carlos Silva :
I currently own three properties, two duplexes and one single family. Which I would like to transfer title to create three separate LLCs, Is that the right way to go. I live in California also heard that it would be wise to set up a corporation and Nevada and make it a partner with the LLCs.this sounds very overwhelming and not really sure what should be the first step and financially if it makes sense to do all that. Or should I just set up a corporation out of Nevada and just put all three properties under that. Also if there's any tax benefit in do this since I'm being nailed on taxes. Thank you any advice would be most appreciated
Hey..all that sounds a lil complicated, to a newbie like me. Aside from those ideas being the right way to go, or not; did anyone tell you the benefits of doing that? I'm definitely curious. I own a condo in Chicago, and I was thinking about transferring the deed to my LLC. But, I don't know what benefit I'll gain.
I don't have any residential property in LLCs. I heard CA has an $800+/yr fee per LLC. They get you if it's in another state, too. I would just get insurance, but that's just me. I am not a legal or tax adviser.
I do put my 5+ unit multi's in LLC(s). No problem financing or insuring commercial property inside a business entity. Residential can be a nightmare. Cheers!
I'm not a pro by any means and would suggest speaking to an attorney and CPA about what you have and what you want to do. Here's my thought process...Each property should have it's own LLC for protection sake; this way if anything is levied against one property, the other properties will not be affected. If you're using a CA LLC, you will have to pay CA fees. If you use a NV corp, I've heard there is great asset protection but I have not seen it for myself and even then I would suggest using a separate one for each asset for better protection. The taxes will flow through to you in an LLC or S corp as personal income. C corp can help with the taxes but you will encounter other things with it like payroll taxes. That's my perspective but an attorney and/or CPA would probably be able to give you clearer options more suited to your individual needs and goals.
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