All Forum Posts by: Andi Morgan

We are in a similar situation with some rentals in Morganton. We weren't hit as hard as Asheville but it's still bad and some of our tenants are out of work for some time. I'm glad you posted this. We are following a similar path as you- flexibility and taking it day by day. It's such a sad situation. 

Thanks to everyone here for these thoughts. My plan is first to move the SC short-term rental into an LLC by itself and to group the other long-term rental properties into small batches. Since some are single-owned and others are owned by my partner and I, one strategy I was considering was having all of them (including the SC short-term rental) be single-member LLC's that are owned by one other multi-member LLC. That multi-member LLC could be owned then by my partner and I. Does anyone know if this would offer additional protection or if I'm better off separating out the short-term rental into its own multi-member LLC? I have heard that you should hold title in one LLC and operate from a different operating entity (either another LLC or a different structure). In my first plan above, the multi-member LLC that own the other single-member would be the operating company, but I'm not sure if this exposes all of the properties to each other's liability. I cannot find any NC attorneys to help me in the near future despite many calls. It's just a busy time of year.

@Jerry W. Thank you for the thoughtful response! We do have living wills that already dictate that each other is inheriting everything if one of us dies, as well as prenups that will dictate us leaving with any properties we had before we got together if we decide to split. If we own properties together and split, we have agreements to split them evenly sans any extra downpayments or improvements that were contributed by one person alone. I was thinking this was probably enough, but you bring up a good point about ensuring these things are also laid out in the operating agreements, and ensuring we have a plan for LLC dissolution or buy-out for those joint properties. Thank you for that! I'll put it on my list of things to work through with whatever attorney we end up using.

My partner and I are unmarried, own some rental properties together, and want to set up asset protection. Deeds are currently in our personal names and we do not file taxes together since we are unmarried. We have several properties we co-own, but I keep hearing all of the asset protection plans talk only about single-member LLCs being the way to go for the ease of taxes end-of-year since those are pass-through/disregarded entities. We know we'll need an additional company above that one (possibly multiple ones) that owns the LLCs, but I'm getting no real answers about how we should structure the LLCs to both maintain ownership without complicating taxes by having a ton of multi-member LLCs that have to file taxes separately at additional costs. Has anyone dealt with this? These properties are in NC and SC and we are also looking for reasonable attorney recommendations for good, solid asset protection plans that involve LLCs owned by another company and possibly an irrevocable trust of some sort on top of that (not totally foreign). Any help or advice would be much appreciated!