Clint, if I currently live in CA, own a TX rental property within a CA LLC, and move to a state tax free state like WA or NV, will I still have to pay CA state taxes on rental income within the CA LLC?
Great question, I recommend setting up a free consultation to discuss some strategies and how they apply to your unique situation. Sign up here: aba.link/k14
Wonderful video - my passion is "serial LLCs", which are supposed to be legally independent from each other, even though all owned by a parent LLC in subsidiary fashion - my experience not too many business consultants know much about setting these "serial LLCs" up. Wouldn't you have only one filing fee, operating agreeement, etc. ? I think there are still some states that don't allow "serial LLCs". Taxes, etc. should all be ultimately consolidated into the parent LLC. The parent LLC can own not only subordinate LLCs, but C and S corps as well.
@@ClintCoonsI have 2 properties in TX and was told to use individual LLCs by your staff. Btw. I had great service. Just couldn’t afford the price tag along with yearly dues to state and your firm.
Let’s say I live in Rhode Island, and I own an online eCommerce store… Can I have my operating LLC based in Wyoming? Or would I have to have my operating LLC based in Rhode Island but owned by my non-operational holding company LLC in Wyoming?
Hi Clint. Great video. I followed another attorney youtube channel and he mentioned that if you create a WY LLC but you live in another state ( ex new York ) and you personally get sue in NY, the judge may ignore WY laws and apply NY laws because thats where you live and got sue. So creating a WY will not do anything as far as protection . Creditor may be able to take wy assets. Whats your opinion on this?
I don't know but another attorney I followed mentioned creditor may get to your llc. It all depends on the judge and what laws he applies. Most likely NY laws since that's where you got sue and since you have WY LLC, maybe charging order based on NY laws may apply. I would like Clint to clarify this since I heard this a couple of times from different attorneys channel
See Born to Build, L.L.C. v. Ibrahim Saleh et. al., Index No.: 009558/2011 wherein the Commercial Division of the New York State Supreme Court ruled that a judgment creditor cannot seize a member’s interest in an LLC through a Marshal’s Auction. Instead, under New York LLC Law, a creditor's rights are restricted to those of an assignee, entitled only to the debtor's share of profits and losses without voting or partition rights to compel the sale of assets like the LLC's Manhattan building.
Hi Clint This is a really educational video! The Decanting clause is genius! Can you do a video on that clause? Also, For just a small biz in a single member LLC, Do you sell an operating agreement template?
My problem: I have Sole vested ownership of my Rental Properties & Real Estate property LLC. I want to include my wife as a member, though she has no vested interest. I want to give her a small % percentage in the Operating Agreement. The Title Company reflects that she must be on the Deed in order to transfer my sole ownership to the LLC, which will force a 50/50% interest contrary to the percentages on the Operating Agreemeement. I don't get it ??? As I am sole owner of the properties ??? I want to give my wife a small percentage to include an irrevocable living trust that will eventually pass on 100% to my wife...
It sounds like you're navigating some complex legal matters with your rental properties and LLC. I recommend setting up a free consultation to discuss some strategies. Visit: aba.link/k14
With regard to having a Wyoming LLC owning the Florida SMLLC which then owns real estate would this alter the IRS "disregarded Entity" status of the Florida LLC? Since it would now be owned by a WY LLC not me as a single member?
Question: if I want to file a lien if I have a property in New York State with a New Mexico LLc do I need to register that LLc in NY state with the new regulations in place? If it’s the case I will use my anonymity
Hello, I am buying my neighbor house in Los Angeles under a new land trust name which owned by my LLC. My current rental house is under same LLC. In future if I decided to build on both parcels should I convert 2 parcels to 1 parcel? Also, should I use one name on title for both properties.
Have you done a video on what could “pierce the veil” of protection? I own several single family rental houses in California, each is held in a separate single member LLC. I never commingle funds. So I’d think I would be safe. However, in a Facebook RE investor group I’m in, so many people are very against LLCs and say they really offer no protection as it is too easy to “pierce the veil”.
I would be interested in the response to this as well. I’ve been told, that the fact that single member LLC‘s are disregarded for tax purposes, would price the corporate veil
Clint is giving some very sound, but mostly GENERAL, advice. Why? BECAUSE EVERY BUSINESS ENTITY AND SITUATION IS DIFFERENT! People want great advice that shields them from every adverse condition but don’t want to get a CONSULTATION and PAY FOR IT! Listen to the advice and do your research: but at the end of the day: legal and tax professionals will need to look into your entity set up on a ONE-ON-ONE basis to ensure your business entitities are set up exactly they way you need them to be in order to profit you, shield you from potential liability, and leave a legacy. Good luck to all!
What about the argument lawyers make that the jurisdiction of the suit will be in the state where the property is. And the fact that the holding company is a Wyoming LLC is irrelevant. That the state laws where the property is held has jurisdiction.
Correct. The issue I was addressing was where you are the member of a SMLLC - hence the recommendation to use a WY LLC as the single member of your state specific LLCs.
@@ClintCoons So does the jurisdiction of the state where the property is held have jurisdiction regarding the charging order or WY? If the state where the property is, I don't see the value in have a WY holding company LLC as the member.
@@bdmonist If the property is where the lawsuit originates, the charging order would not apply because the claim would be against the LLC and not the member.
See Born to Build, L.L.C. v. Ibrahim Saleh et. al., Index No.: 009558/2011 wherein the Commercial Division of the New York State Supreme Court ruled that a judgment creditor cannot seize a member’s interest in an LLC through a Marshal’s Auction. Instead, under New York LLC Law, a creditor's rights are restricted to those of an assignee, entitled only to the debtor's share of profits and losses without voting or partition rights to compel the sale of assets like the LLC's Manhattan building.
Claim Your FREE 45-minute consultation to receive business planning tips and asset protection. 👉 aba.link/k14
Clint, if I currently live in CA, own a TX rental property within a CA LLC, and move to a state tax free state like WA or NV, will I still have to pay CA state taxes on rental income within the CA LLC?
Great question, I recommend setting up a free consultation to discuss some strategies and how they apply to your unique situation. Sign up here: aba.link/k14
Wonderful video - my passion is "serial LLCs", which are supposed to be legally independent from each other, even though all owned by a parent LLC in subsidiary fashion - my experience not too many business consultants know much about setting these "serial LLCs" up. Wouldn't you have only one filing fee, operating agreeement, etc. ? I think there are still some states that don't allow "serial LLCs". Taxes, etc. should all be ultimately consolidated into the parent LLC. The parent LLC can own not only subordinate LLCs, but C and S corps as well.
Yes series LLCs are a great option. I have a few videos on using them.
@@ClintCoonsI have 2 properties in TX and was told to use individual LLCs by your staff. Btw. I had great service. Just couldn’t afford the price tag along with yearly dues to state and your firm.
Let’s say I live in Rhode Island, and I own an online eCommerce store… Can I have my operating LLC based in Wyoming? Or would I have to have my operating LLC based in Rhode Island but owned by my non-operational holding company LLC in Wyoming?
Hi Clint. Great video. I followed another attorney youtube channel and he mentioned that if you create a WY LLC but you live in another state ( ex new York ) and you personally get sue in NY, the judge may ignore WY laws and apply NY laws because thats where you live and got sue. So creating a WY will not do anything as far as protection . Creditor may be able to take wy assets. Whats your opinion on this?
How can a NY Judge get assets out of a Wyoming LLC?
I don't know but another attorney I followed mentioned creditor may get to your llc. It all depends on the judge and what laws he applies. Most likely NY laws since that's where you got sue and since you have WY LLC, maybe charging order based on NY laws may apply. I would like Clint to clarify this since I heard this a couple of times from different attorneys channel
See Born to Build, L.L.C. v. Ibrahim Saleh et. al., Index No.: 009558/2011 wherein the Commercial Division of the New York State Supreme Court ruled that a judgment creditor cannot seize a member’s interest in an LLC through a Marshal’s Auction. Instead, under New York LLC Law, a creditor's rights are restricted to those of an assignee, entitled only to the debtor's share of profits and losses without voting or partition rights to compel the sale of assets like the LLC's Manhattan building.
I know nothing about trading /investment and l'm keen on getting started. What are some strategies to get started with?
Hi Clint
This is a really educational video!
The Decanting clause is genius!
Can you do a video on that clause?
Also,
For just a small biz in a single member LLC,
Do you sell an operating agreement template?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
My problem: I have Sole vested ownership of my Rental Properties & Real Estate property LLC. I want to include my wife as a member, though she has no vested interest. I want to give her a small % percentage in the Operating Agreement. The Title Company reflects that she must be on the Deed in order to transfer my sole ownership to the LLC, which will force a 50/50% interest contrary to the percentages on the Operating Agreemeement. I don't get it ??? As I am sole owner of the properties ??? I want to give my wife a small percentage to include an irrevocable living trust that will eventually pass on 100% to my wife...
It sounds like you're navigating some complex legal matters with your rental properties and LLC. I recommend setting up a free consultation to discuss some strategies. Visit: aba.link/k14
I love this channel. So informative and so clever. 🔥
Glad you enjoy it!
With regard to having a Wyoming LLC owning the Florida SMLLC which then owns real estate would this alter the IRS "disregarded Entity" status of the Florida LLC? Since it would now be owned by a WY LLC not me as a single member?
it does not
Question: if I want to file a lien if I have a property in New York State with a New Mexico LLc do I need to register that LLc in NY state with the new regulations in place? If it’s the case I will use my anonymity
You do not need to register the NM LLC in NY
Hello,
I am buying my neighbor house in Los Angeles under a new land trust name which owned by my LLC.
My current rental house is under same LLC. In future if I decided to build on both parcels should I convert 2 parcels to 1 parcel? Also, should I use one name on title for both properties.
I would place them in separate land trusts and ideally have separate LLCs as the beneficiaries.
@@ClintCoons what if I convert 2 lots to 1 lot and build 1 apartment on both parcels?
Have you seen any cases where the judge over ruled The operating agreement?
I have not but that doesn't mean it hasn't happened.
Have you done a video on what could “pierce the veil” of protection? I own several single family rental houses in California, each is held in a separate single member LLC. I never commingle funds. So I’d think I would be safe. However, in a Facebook RE investor group I’m in, so many people are very against LLCs and say they really offer no protection as it is too easy to “pierce the veil”.
I would be interested in the response to this as well. I’ve been told, that the fact that single member LLC‘s are disregarded for tax purposes, would price the corporate veil
Done and will be published in the coming weeks.
Clint is giving some very sound, but mostly GENERAL, advice. Why? BECAUSE EVERY BUSINESS ENTITY AND SITUATION IS DIFFERENT! People want great advice that shields them from every adverse condition but don’t want to get a CONSULTATION and PAY FOR IT! Listen to the advice and do your research: but at the end of the day: legal and tax professionals will need to look into your entity set up on a ONE-ON-ONE basis to ensure your business entitities are set up exactly they way you need them to be in order to profit you, shield you from potential liability, and leave a legacy. Good luck to all!
What about estate succession? Great clauses thank you!!!
It is best to hold your interest in a living trust but you most state laws will handle succession through the executor.
I wish I could afford the $20k to use your firm and the yearly dues.
You must have a sizable portfolio because only a few clients require that level of investment to protect their assets.
@@ClintCoonsno. I own 2 houses. How do I reach out to you instead to go over the particulars?
Where can you buy these Operating Agreements for Holding Companies?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
I am in Florida and want to start as a SMLLC till I grow then turn it into an s-corp; small ecommerce 1st! Does this apply
Yes in FL the LLC does not have charging order protections.
Can spouses register a multi member llc, since the state of Utah is not a community property state, but file as a single member llc for tax purposes?
Not unless you assign the interest to a joint living trust and list only one spouse as the trustee on the assignment.
Hi, is there a decanting clause in the LLC you all setup for me before?
I recently added this to our template.
Brilliant!!! Thanks Clint
This has been encouraging. thx
poison pill... im sold.
What about the argument lawyers make that the jurisdiction of the suit will be in the state where the property is. And the fact that the holding company is a Wyoming LLC is irrelevant. That the state laws where the property is held has jurisdiction.
Correct. The issue I was addressing was where you are the member of a SMLLC - hence the recommendation to use a WY LLC as the single member of your state specific LLCs.
@@ClintCoons So does the jurisdiction of the state where the property is held have jurisdiction regarding the charging order or WY? If the state where the property is, I don't see the value in have a WY holding company LLC as the member.
@@bdmonist If the property is where the lawsuit originates, the charging order would not apply because the claim would be against the LLC and not the member.
Good content. 👍🏾
This is the good stuff. Thank you. 👍
Glad you enjoyed it!
How would this work in New York?
See Born to Build, L.L.C. v. Ibrahim Saleh et. al., Index No.: 009558/2011 wherein the Commercial Division of the New York State Supreme Court ruled that a judgment creditor cannot seize a member’s interest in an LLC through a Marshal’s Auction. Instead, under New York LLC Law, a creditor's rights are restricted to those of an assignee, entitled only to the debtor's share of profits and losses without voting or partition rights to compel the sale of assets like the LLC's Manhattan building.
What about TEXAS?
It offers protection