Mark Kohler here with another tax and legal tip let's talk about the series
LLC now every year and other state adopts this series lol stature and
twelve or thirteen states that allow for a series continues to grow and it's
always a variable moving target but the series also is a powerful way to get
protection for my investors that have multiple rental properties now the
series LLC only works in states where there's a series a series LLC statute in
my new book I give a list of all those series states in the appendix in your
Google is defined what states might be a series of
get in there and find out if this strategy will work in your state and
here's how it works so essentially the normal problem people have is that they
can say well all have one LLC and I'll put all my rentals in there well that's
kind of scary because all of your eggs in one basket and it's cheap and it's
easy but it's scary having all of your reynolds out there again in one little
so what do we do then we go out and gets cold and scared into having an LLC for
everyone and that's a nightmare right it's expensive and we've got wonderful
asset protection but we got multiple checkbooks multiple tax returns in its
it's overwhelming and there's those companies out there selling into the
structure so watch out this is where the series LLC comes in because it's a
balance between this little tip here at the end of what you can do in a
non-serious state but if you're in a serious state like Tennessee
Utah Oklahoma Nevada again just to name a few you can have in LLC and it can
have baby subs that will act like little LLC's holding rental properties where
you get extra asset protection in between each one of these but you only
have the cost of setting up one LLC and one tax return so it gets to be really
cost effective are you still have to have multiple checkbox in the names for
these different LLCs and you'll hold the properties in the names of those lol but
the beauty again is the filing fee savings in the tax return filing savings
that can be really really efficient some states like illinois it's like a $50
filing fee for each LLC but when your pain 604 LLC that's a big deal in
Illinois lot of safety texas has a series of all sorts of states provide
this option to set up as many babies lol sees you want so look into it and see if
it's a good fit for you now for those of you that are in a series LLC state I
think you have to other options one buying the balance that works for you
with the number of LLCs that you have you might put three to four properties
in each LLC and its not an issue of quantity but quality of your Reynolds
and how much risk is involved you still want some protection but you don't want
to overdo it for those of you that have 10 or 20 or more rental properties i
love to create a parent LLC in a charging order protection state another
video encoder entities chapter in my book you have this fellow senior Quality
state and then set up baby LLC's much like a series of structure we have
different Ellis season other states all finally in 2011 tax return but you're
getting double layer protection
for those of you that have a lot of rental properties this could be a good
fit so I guess in the big scheme of things
five options with the series LLC
option right down here and find what works for you but if you have rental
properties get protection and find a structure of the LOC model that fits you
best in their american dream thanks for listening and I hope that information
was helpful and let me speak from the heart here I've been talking about
topics like this for ten fifteen years I'm CPA attorney bestselling author
radio show host and I am passionate about helping small business owners say
taxes bill wells and protected please check out the link right here
download my free ebook on 10 common mistakes small business owners make in
the tax and legal arena also I got daily tips a weekly blog radio show every week
this information is and I don't love to help you click below find out more about
me and thanks for listening
Subtitles by the Amara.org community