Umbrella corp worth it?

[Ryan Kenneth]

Hey all, 

Up until now our rental properties were held in our name. As I'm scaling to larger buildings (we do buy and hold) I now want to incorporate for the tax savings and protection. I'm still very much a rookie when it comes to understanding how to fully leverage corporations. We'll ideally be acquiring a 10-16 unit building this year which I plan on putting in a corp. My accountant asked me if I also wanted an umbrella corp that houses the 10-16 unit corp.  My filing and monthly accountant retainer fees would nearly double so I wanted to ask you guys is the umbrella corp worth it?

Ryan

[Roy Cleeves]

Hi Ryan:

Best to ask your account what tax advantages there would be to having that umbrella corp.  And best to ask your attorney what extra protection or risks are associated with the umbrella corp as well.  If there is not much advantage on either of these two then you probably don't need it.  As you would want the tax advantages to over come the costs.  And as far as liability, you still have insurance for your properties so that should be covered even with just one corp to hold the property.  Good Luck