The best structure these days, hands down, is the Series LLC, if it works. There are currently 8 states that have Series LLC law. They are Delaware, Illinois, Iowa, Oklahoma, Nevada, Tennessee, Texas and Utah.
If you’re not in one of these states, you still may be able to take advantage of the Series LLC law. California is causing a bit of a ruckus on the fees, but still allows a Nevada Series LLC to operate in California. Other states have specifically allowed the law from other states.
We’ve blogged about some of the basics on the Series LLC previously. Here are a few links on the Series LLC you can check out for more information:
- Series LLCs Rock! Reason #1: Ultimate Privacy.
- Most of the time you won’t have to register the individual cells anywhere. That means you have a structure that others aren’t going to easily trace to you.
- Series LLCs Rock! Reason #2: Cheaper to maintain.
- Because you don’t need to register individual cells, you don’t have to pay state fees on the cells. It’s cheaper.
- Series LLCs Rock! Reason #3: Cheaper to Set-Up.
- You’ll need professional help for the initial Series LLC set-up. And by all means, get a trained professional who knows what she’s doing. You don’t want to get someone who tries to use a recycled LLC agreement. A Series LLC agreement is complicated and will take some thought in the initial set-up.
But once the Series LLC is set up, you can easily set up the individual cells by yourself. Fast, cheap, easy – in less than 2 hours, you’ll have a new structure and you can do it all yourself.
- One of the challenges that real estate investors have is protecting the properties from lawsuits. If you have multiple properties that you put in one LLC, a lawsuit against one will mean you put all at risk. A Series LLC allows you to put each property in a separate cell for maximum protection. But, best of all, you don’t have to pay fees on each cell and you can file just one tax return for all the cells. Gotta love it.
- Series LLCs Rock! Reason #5: Perfect for Serial Entrepreneurs.
- If you like to start businesses, knowing that half or more probably won’t work out, then the Series LLC is the best structure going. You can set up cells cheap, easy and fast and dissolve them just as fast.
You will never again have to worry about liability from a failed business venture with a Series LLC, provided you follow all the rules and have a solid initial set-up.
I recommend Megan Hughes of Business First Formations for set-up on the Series LLCs. You can reach her at Info@BusinessFirstFormations.com.
Learn advanced strategies with the Series LLC with the Series LLC: The Ultimate Business Structure Flexibility.