All Forum Posts by: Jeffrey S. Breglio

The overall series LLC will file for whatever tax classification it is registered under. Each series does NOT file a return. They act like "wholly owned subsidiaries" who's accounting passes through to the main LLC. But you must keep membership the same throughout!

You can make each series with different owners and structures, but then you have to create a new operating agreement for it, it's own EIN and tax return, etc, and then you've just eliminated the convenience of a series LLC that you wanted in the first place. So I never recommend this.

Yes, creating a series is an internal document. We provide a company resolution specifically for this in our Series LLC package. Then clients can simply create as needed.

Jeff

On the comment of using multiple standard LLCs. REMEMBER you want more than one owner of you LLC for asset protection purposes (long explanation). And if you have more than one member of the LLC, you have to file a tax return and issue K1s. This gets costly!!

If your state does not recognize series, the create a multi-member LLC as a holding company (for asset protection and 1 tax return), then create wholly-owned subsidiary LLCs (child companies) of the holding co. These child co's will separate out the liability (like series do) but won't have to file a separate tax return. This structure basically is mirrored in the series LLC.

This is the "old fashioned" way here in Utah as we've mostly moved to the series LLC :)

Jeff

I've been creating Series LLCs for clients for over 10 years in Utah. We love them. Fantastic vehicles for holding numerous rental properties. MD/VA do not authorize Series. DC does. Typically I do not set them up for flips/wholesales (we use a tax savings entity for those pursuits). So this is typically an asset protection vehicle to separate out liability one property from the other.

There is debate if you create an foreign series LLC (foreign here means out of your home state) to use in your state and whether the individual series would be considered separate. I'm of the opinion they would not.

For my Utah clients with property in other states, we title them in a trust and make the beneficiary of that trust a series. That way we generally do not need to registered the LLC in that state (saving $) and with the ability to argue that the trust might be in a non-recognizing state, but the beneficiary is and the home state laws would apply.

There are some bookkeeping and logistical hoops to jump through that are different than a standard LLC. You can learn those. But the series is worth it.

Jeff

@Garrett Hansen

Welcome to the real estate investment scene. 

Glad to hear that you are looking to purchase your first investment property in the next  couple months. 

I would highly recommend going to the local REIA's if you haven't already started. You might be able to pick up a couple things to help you buy more properties.

check out www.slreia.com ( 2nd Wednesday of the month at SLCC Sandy Campus) 

www.uvreia.com

and also NURIEA. 

@Jim Stephenson

Welcome to the investment scene :). 

Are you going to the October meeting? 

Come talk to me at there 

Jeff Breglio

@Drew Clements

Thanks for the shout out :) 

Jeff Breglio 

I've lived (off and on) in the city for 40 years. Grew up in MD.

not yet. have a few options. Col Heights. 14th/U, Brookland are in the running (but almost certainly in the city)

I'm a 15 veteren in RE investment as investor, sales agent, attorney, title & escrow in Utah. Been splitting time lately between Salt Lake and DC. Will be relocating to DC in the next few months. Glad to hear there are some good REIAs. I'm on the board of two excellent ones here and do a lot of education for them. Excited to get to know the DC REIA market. Hope it's as involved, and evolved, as the ones here.

Jeff

You do not set up the Solo 401K at your brokerage. As an employer sponsored plan, an entity that you own, establishes a trust that acts as the 401K. That trust then gets a bank account. You then direct your current custodian to roll over the funds to the bank account you set up. If it's a traditional to traditional account, that is not a taxable event. At that point, you as the trustee can manage that account and invest the way you want.

Jeff