All Forum Posts by: Megan Templeton

Hi there! I would recommend using the dual LLC set up that you have suggested. One LLC would be the asset holding LLC for the building and one would be the operations for the business. This does separate out your liability so that if the business is ever sued, the property would be protected. It does also provide you flexibility for a future exit strategy as you could sell the biz and continue to rent the property for passive income. The key piece is making sure you maintain a rental agreement between the biz and property to formalize the setup. Dual LLCs will also help with building biz credit, deductions for the property, and can be useful for alternative retirement accounts such as a solo 401k if you ever wanted to go in that direction.

@Khadija Imara

Hi there!

Try to check Royal Legal Solutions they're a great resource for what you are looking for. They are a one stop shop operating in all 50 states have attorneys and CPAs on staff to assist with entity structuring, business planning, and tax planning.

Thanks,

-Megan

@Damion Williamson

Try to check Royal Legal Solutions they're a great resource for what you are looking for. They are a one stop shop operating in all 50 states have attorneys and CPAs on staff to assist with entity structuring, business planning, and tax planning.

Thanks,

-Megan

@Michael Albert

Hi there! Royal Legal Solutions is a great resource for what you are looking for. They are a one stop shop operating in all 50 states have attorneys and CPAs on staff to assist with entity structuring, business planning, and tax planning. They will also be able to walk you through the Delaware Statutory Trust which may be a better fit for you as a CA resident instead of an LLC (which is subject to high yearly fees).

Thanks,

-Megan

@Katelyn Atcavage Robideaux

Hi there! I recommend separating out the properties into separate LLCs. This ensures that if one property is litigated against, the other property isn't at risk. It places the properties separate "buckets" per se. You could use a separate LLC for each or you could look into an entity like a series LLC. This would allow you to have one entity that is filed with the Secretary of State but you would be able to create unlimited child series LLCs underneath without the need for additional filings, banking, etc. For state of formation, I would recommend TX for a series LLC. If you go with a hub and spoke model, I would have the hub by a WY LLC. They have the best charging order protections and minimal fees/maintenance. For CPAs, I do recommend a real estate specific CPA - they will have a better understating of deductions available, how to claim real estate professional, etc. I would recommend checking out Royal Legal Solutions. They have attorneys and CPAs and are a one stop shop operating in all 50 states - they can help you build the full team you will need for structuring and guidance as our business scales.

Thanks,

-Megan

@Gabriel Isaac Hazout

Hi there! I recommend separating out the properties into separate LLCs. This ensures that if one property is litigated against, the other property isn't at risk. It places the properties separate "buckets" per se. You could use a separate LLC for each or you could look into an entity like a series LLC. This would allow you to have one entity that is filed with the Secretary of State but you would be able to create unlimited child series LLCs underneath without the need for additional filings, banking, etc. For state of formation, I would recommend TX for a series LLC. If you go with a hub and spoke model, I would have the hub by a WY LLC. They have the best charging order protections and minimal fees/maintenance.

Thanks,

-Megan

@Kaylee Sheppeck

Hi there - I would recommend always using LLCs for your properties. If you are going to have multiple properties, I would look into the series LLC (or DST if you are a CA resident of invest in CA). The LLC is necessary to ensure you have liability protection in the event of a lawsuit - it ensures that your personal assets are not at risk because of a business issue and vice versa. Using an LLC can also provide tax and operational benefits as it allows you to capture business expenses, opens up additional financing, etc. Happy to chat more if you have questions!

Thanks,

-Megan

Hi there! @Sam Lee

For a CA resident, I would actually recommend that you look into the Delaware Statutory Trust (DST). The DST operates like a series LLC if you are familiar with such - it allows you to have a parent DST that is filed with DE and pays a filing fee but then you can create unlimited child series trusts (that operate like individual LLCs) under the parent. This allows you to separate out properties just like a hub and spoke model would. With the DST you an also benefit from using one set of books, one bank account, etc. The biggest benefit for a CA resident with the DST is that it will avoid the franchise tax. With a hub and spoke model you will pay $800 per LLC per year - with the DST you avoid these yearly costs and have an infinitely scalable business structure. Happy to answer any questions you have on it.

Thanks,

-Megan

Hi there! @Chris Schorre

I would recommend using an attorney to make sure you comply with the county regs and don't run into any scriveners errors that could invalidate the transfer. For just a quit claim deed, the cost should be relatively low. Royal Legal Solutions handles these frequently and would be a good resource to check with.

Thanks,

-Megan

@Nikko Tountas

Yeah, you typically can but there will be stipulations to it depending on the state of the property and if you have a loan/type of loan. Happy to chat more if you want to message me.

Thanks,

-Megan