All Forum Posts by: Savannah Wallace

@Stuart Udis 
Wyoming is one of the few states that provides strong privacy protections for entities filed there. When a Wyoming LLC is listed as the member of an LLC holding real estate, the owner's name is kept off public records. If someone searches the Secretary of State (SOS) website, they will only see the Wyoming LLC listed, not the individual owner's name. Furthermore, Wyoming does not require disclosure of member or manager information in its filings, making it difficult for anyone to determine ownership without extensive legal efforts. This anonymity can deter frivolous lawsuits or claims, as litigants may be less inclined to pursue action if they cannot easily identify the owner. They would have to initiate a lawsuit and engage in discovery, which can be expensive and time-consuming, to determine who the member is. While anonymity does not shield ownership in court proceedings, like you mentioned, it adds a layer of complexity that could encourage litigants to settle for insurance policy limits rather than pursuing costly investigations into ownership.

Additionally, Wyoming LLCs offer charging order protection. If a judgment is placed against an individual owner, creditors cannot force distributions from the LLC. This means that assets within the LLC remain protected from personal creditors, ensuring that it can continue to operate and generate cash flow.

While it's true that maintaining a Wyoming LLC incurs additional costs (e.g., annual filing fees), these expenses are relatively minimal (WY LLCs renew at $62 annually) compared to the potential benefits of anonymity and asset protection.

For these reasons, I encourage my clients to utilize a Wyoming LLC to create an additional layer of separation and to provide them with asset protection.

If you're confident in your ability to ensure that you don't commingle funds from your businesses and can maintain accurate accounting records, then you could utilize one Amazon Business Account for multiple businesses. Like you stated, use separate credit cards for each of your businesses and I think that having the packages shipped to different addresses will also help with keeping each business separate from each other. 



Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hi Jenna,

Congratulations on your first property, that is so exciting!

A well-drafted lease agreement is essential for ensuring that all parties involved understand their roles and responsibilities, helping to minimize potential disputes. It’s important to use a lease agreement that thoroughly addresses all key components, making it easier to enforce if necessary.

While there are many templates available online, I strongly recommend having an attorney either draft or review your lease agreement. It’s crucial to work with someone familiar with your local landlord-tenant laws, as these can vary significantly depending on your location.

A comprehensive lease agreement typically includes details such as the names and contact information of all tenants, the landlord (or property management company, if applicable), and a full description of the property. It should also specify the rental term—whether it’s month-to-month or fixed-term—and outline provisions for renewal, penalties for holding over, and payment details like the rental amount, due dates, payment methods, and late fees.

Other important sections include occupancy rules (e.g., guest limits, pet policies, permitted uses), utility responsibilities, subleasing/assignment terms, security deposit conditions (including how it’s held and returned and who receives the interest), and guidelines for landlord entry. Additionally, a termination clause is vital; it should clearly define the conditions for early termination by either party and outline penalties for breaking the lease. Including definitions of breach and remedies can help avoid confusion later on.

Don’t forget to include any statutory disclosures required by local laws, such as lead paint hazards or mold issues. Other useful sections might address property condition, insurance requirements, abandonment policies, and dispute resolution procedures. While lease agreements can be detailed and complex, taking the time to make them thorough will save you headaches down the road by reducing ambiguity and minimizing disputes

Again, congratulations on your property, and I wish you the best of luck!



Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

I’m unsure as to whether BP provides templates, but there are a lot of resources online, both free and paid, where you can find template promissory notes. 

Begin by determining whether you require a secured or unsecured promissory note. If collateral will be used, ensure the asset description is included and accurately detailed. For notes involving property as collateral, a deed of trust may also be necessary.

Clearly define the payment terms within the document. This should include the total loan amount, the applicable interest rate (and how it is calculated), and the repayment schedule. If prepayment is allowed, this should be explicitly stated. Additionally, specify the acceptable payment methods (e.g., cash, check, ACH transfer).

Well-drafted promissory notes will thoroughly address default, the conditions that constitute it, penalties for late payments, and the remedies should a party breach the agreement. I’ve come across many notes that gloss over this, leading to ambiguity during enforcement, and I encourage my clients to make this section as explicit as possible so that there aren’t any questions, and should there be a breach, there are clear remedies and actions that can be taken. In that same vein, be sure there is also a dispute resolution clause governing how disagreements are handled, whether through mediation or arbitration, and if those options are exclusive.

As with any contract, the promissory note must clearly identify all parties involved using their full legal names and addresses. Both the lender and borrower must sign the document for it to be enforceable.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Unfortunately, scams like this are quite common. Companies can make very convincing flyers stating that you are required to pay and file something. When my clients send me these, the first thing I look for is a statement, usually towards the bottom, that states "this is not a government entity". If I don't see that, then I look for the address for which to send payments to and the name of who to make the check out to. If it's not the SOS address or the check isn't being made out to a government entity, then I know that this is not a legitimate filing requirement. Unfortunately, scams of this nature are regrettably common. Companies often distribute official-looking flyers that falsely assert you have an obligation to make a payment or file specific documentation. When my clients forward such notices to me, my initial step is to search for a disclaimer, typically located towards the bottom, which explicitly states "this is not a government entity." If this disclaimer is absent, I then examine the provided address for payments and the name of the payee. Should the address differ from the Secretary of State's office or the payee not be a recognized government entity, I can usually conclude that the filing requirement is illegitimate.

Furthermore, these deceptive flyers may employ other tactics to appear credible. They might incorporate official-looking seals or logos, reference legitimate government agencies or regulations, or even include threatening language about potential penalties for non-compliance. Apart from initial filing fees and annual filing, generally, the government is not going to be asking for additional fees for services, and the request can be ignored.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

@Eric Blair When purchasing property, establishing an LLC beforehand and buying the property under the LLC can streamline the overall process. This approach eliminates the need for a separate deed transfer after the purchase to move the property from your personal name into the LLC.

A key advantage of purchasing property directly in the name of an LLC is the added privacy it affords. Your name doesn't appear on public records as an owner of the property, shielding your personal identity from public scrutiny.

However, it's important to note that if you plan to finance the purchase through a lender, there may be restrictions on closing in the name of an LLC. Many lenders require borrowers to close in their personal names due to underwriting requirements or risk considerations. To address this, it's essential to have open communication with your lender early in the process to determine whether they will allow you to close in the LLC's name or if alternative arrangements are necessary.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

For any investment of real estate, I'm going to recommend placing each property into an LLC for asset protection.

LLCs can help shield you from personal liability if a tenant were to ever sue as well as offer protection against creditors in case of a personal judgement through charging order protection, when the LLC has been structured appropriately. With the property in an LLC if someone were to sue the property the could only go after the assets in the LLC and not anything else (assuming you did not guarantee anything personally and the corporate veil has not been pierced).

Also, depending on the structure, you can keep your name off the public record as the owner of the property and even as part of the LLC. For my clients, I recommend that they place the properties in an LLC that has been formed in the state where the property is located and have the member of that LLC be a Wyoming LLC. This provides for both anonymity as well as charging order protection.

Depending on he type of mortgage on the property, if you're looking at moving the properties out of your name and into LLCs, then you may benefit from a land trust. Depending on the terms of the mortgage, transferring the property to an LLC may be considered a sale, thus triggering the due on sale clause. However, putting it into a land trust first avoids triggering the due on sale clause.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

To obtain an EIN for an LLC an individual must be listed as the tax responsible party. Like you mentioned, in 2018 the IRS stopped allowing other entities to act as the tax responsible party for other entities, requiring individuals to be listed instead. The good news is that neither the application to receive the EIN nor the EIN records itself is listed publicly, so your connect with the LLC is not made available to anyone. This also doesn't impact your tax wise. As long as you've elected the LLC to be treated as disregarded and set up the Wyoming LLC as the member of your Florida LLC, all of the activity in the FL will flow down and be reported on your Wyoming LLC's tax return.

Having separate bank accounts for each entity helps to maintain the corporate veil and avoid commingling. Be sure, especially if you add additional LLCs, to maintain good bookkeeping records so that you know from which entity the funds are coming from and/or going to. This definitely makes things easier for you come tax time too.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hi Keith!

While I am not personally investing in sober living facilities, I have many clients who do. I enjoy working with them and witnessing their dedication to assisting individuals in vulnerable circumstances who are striving for a positive change. Secure housing is fundamental to embarking on a new path. Combining a means of generating income with providing support to others is a win-win.

I highly recommend establishing contact with the National Alliance for Recovery Residences (NARR) if you have not already done so. This will provide opportunities to network with individuals sharing similar objectives and potentially connect you with residents for your property. Moreover, providing sober living accommodations is a common initiative for nonprofit organizations, and numerous clients of mine have established nonprofits specifically for this purpose. Nonprofits are alway seeking connections to either find residents for their facilities or locate facilities for their residents. They are also typically willing to share their experiences in these areas. I suggest researching nonprofit organizations in your local area that provide this service and contacting them to get their insights.

When leasing your property, it is important to establish clear house rules that each resident must sign and adhere to in order to maintain their residency. These rules serve to protect the residents, support their recovery process, and ensure the proper maintenance of your property.

Furthermore, I recommend placing your property within an LLC for asset protection. By transferring the property out of your personal name, you can dramatically reduce the liability exposure associated with the real estate and safeguard your personal assets in the event of a lawsuit.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

 Hi Rashid, 

Utilizing an LLC is the easiest way to go about this from an owner's perspective, but it can complicate the process when you're working with individuals or companies who are not familiar with the strategy. In which case, a 3rd party trustee would be the next best option. When my firm does this for our clients, we sign a resignation deed shortly after the initial deed filing, and our clients hold onto that until a situation arises (ex. selling the property) where they need to show that they are the trustee now and have the authority to sign on behalf of the trust.