All Forum Posts by: Olia Fogel

You can set up an LLC in one state, and then just do a foreign filing in the states where you are actively doing business.

Statutory Trusts, both Wyoming and Delaware are great for holding multiple rental properties. They have a parent-child structure to separate assets into secure series, similar to a Series LLC, extending liability protections to real estate investments within the structure. The ability to shelter assets inside of individual series offers investors a high degree of protection.

If you plan on holding multiple properties in one LLC, then I would recommend looking into a Series LLC, as it has unlimited scalability. Creating new series is a simple process that does not require any additional filings or fees with the state. Additionally, each series receives complete liability protections while you avoid the cost of creating an entirely new company each time you acquire a new property.

I would recommend an LLC + Agent Trust. With this setup you would be able to split the ownership on the trust level while keeping the information on the trustees and beneficiaries (managers and members) anonymous.

Yes, you can create an entity in the US. Instead of getting an EIN, you'll need to get a TIN (taxpayer identification number) with the IRS (Form W-7) so you can do business in the US and be taxed accordingly.

You will also need to get a registered agent in the state where the entity is formed. There may also be certain tax consequences to consider when choosing the type of entity you want to form, for example, for Canadian citizens I often recommend setting up an LP rather than an LLC to minimise the tax liability on the Canadian side.

Publication is a very outdated requirement, but New York Limited Liability Company Law requires both NY LLCs and foreign LLCs doing business in the state to publish notice in two newspapers (one daily and one weekly) in the county where the LLC was formed.

If you don't publish notice of your LLC within 120 days of forming your LLC, NY will suspend your authority to do business in the state. This will make it nearly impossible to secure any business licenses or permits.

I would recommend hiring a firm that will complete this for you.

I would strongly recommend having an attorney set up an entity for you, especially if you intend on holding an asset in this LLC.

If you are setting up an LLC yourself, it will most likely be an LLC without an Operating Agreement, no anonymity, and with you being personally listed as the registered agent.

 A Land Trust is a revocable trust agreement, which is created to hold title to the property. It should normally be drafted by an attorney.

I would recommend using a combination of an LLC and a land trust. First you'll create an anonymous land trust and place the property into the land trust. Then you'll make your LLC a beneficiary of the land trust. Not only will a land trust help you avoid triggering the due on sale, but it also helps with transfer taxes and keeping your real estate holdings private.

If you are a CA resident, then I would recommend looking into a Delaware Statutory Trust (DST). It has a parent-child structure to separate assets into secure series, similar to a Series LLC, extending liability protections to real estate investments within the structure.

It's generally best to have each major asset inside its own company. So if you own, say, five properties, you will have your parent DST as well as five series beneath it.The ability to shelter assets inside of individual Series offers investors a high degree of protection.

Additionally, DSTs don’t have to pay the $800 annual Franchise Tax owed by LLCs and Series LLCs.