All Forum Posts by: Sean Morrison

What @Basit Siddiqi said.

I just started using Zoho One. It's a suite of applications that includes all the same things Google docs and email does, but also has other programs like a CRM, scheduling (like acuity), meetings (like Zoom), dropbox-like storage, Flow (like Zapier), and invoicing. My take so far is that none of the programs are the best of breed, but many integrate with each other so work really well. I still use QB for accounting, gmail, and Box for storage.

You can register the LLC yourself through the Secretary of State's website. However, there's not much liability protection unless you get the operating agreement and other docs in place, and treat the business like a business. Make the correct investment and talk to a lawyer and CPA first.

Wyoming has two things going for it - it's relatively anonymous and has friendly asset protection laws. However, it's a bit over-hyped. Anonymity is not all it's cracked up to be. It will keep people from peeking to see who owns the property, but doesn't offer much by way of liability protection since the court can simply order the owners be disclosed. And asset protection will be limited since the property's local state will have more say over that. But let's say you're sued in State A where your property is, and also have assets in State B. Having the WY LLC may help protect the State B assets.

And insurance is still your best defense.

But again, this is way too advanced for buying your first property. Asset protection is for people with assets. Go get some assets!

Best practice is to have the LLC in the same state as the property. States are very guarded on their real estate laws, which are different in each state, and they will give far higher preference to an in-state LLC than out of state. Sometimes, they may even disregard an out-of-state entity. However, you can form an out-of-state company to own the in-state LLC. All of this is a bit much if you're just buying your first rental, but at least you know what's out there.

According to Google, every state has at least some homestead exemption, except New Jersey and Pennsylvania.

As a general rule, it's safer to establish a local LLC to hold real estate. Courts typically apply local law to entities when they hold real estate, regardless of where they're formed. So if your LLC doesn't comply with local laws, because the laws are different in the other state, then it may be disregarded.

Perhaps they really meant they were filing a separate Schedule E for each property. It would still be one tax return.

One point that is often missed - homestead exemption. If this is your home and you put it in an LLC, depending on your state you may lose your homestead exemption. That could potentially be a larger cost than an insurance policy.

@Ned Carey is right about the different types of attorneys you may need. A title attorney may not be the best at corporate formation, or taxation. For example, I do the corporate and securities stuff, but not title, real estate closing docs, or landlord/tenant stuff. Work with your local REI groups and talk with attorneys who show up there.