My EXACT LLC Structure for Investing
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- Опубликовано: 11 окт 2024
- With LLCs, corporations, trusts, and so many other options, there are many asset protection strategies out there. Here is the exact LLC structure that I use for investing.
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It would be interesting to hear a contrast to this such as when is it not a good idea to use an LLC for some sort of business or investing opportunity.
According to what business you are doing, you don’t have to reside in same state as LLC.
Generally, yes. Though you'll need a registered agent in the state at the least.
No mention at all that if you have an LLC or other artificial entity, and you are not an attorney, in many states you cannot represent the entity in court (with rare exception being some small claims courts). So add that cost if ever needing to sue to collect from tenants or incompetent contractors.
I specifically mentioned that compliance costs grow with each new entity / layer. This wasn't a comprehensive overview of all potential costs as that will be different for each person depending on how you structure things. But, yes, that would be a potential extra cost if you were wanting to represent yourself for some reason.
I notice you've not got an LLC to hold your listed securities. In the UK this is made very difficult by the FCA and so not worth it unless you've got a portfolio somewhere in the millions of pounds. I'm guessing it's a similar case with the SEC in the US?
I think it was fairly glossed over what the trade offs are when you own a proxy LLC
And what does protection mean, is it usually just lawsuits, like strategically or hygiene wise it would be nice to be a bit more detailed as this was fairly declarative.
Cool to know but would be nice to know your thought process,
but also, if this was posted for the sake of “content”, just ignore my question, it’s easy to tell
The video was primarily about how I structure things for my investments. I spent the first portion explaining the main reasons why (i.e. limiting liability since the business's debts and liabilities are in the business's name, not my own). I tried to make it clear that the biggest draw backs are generally compliance costs. Granted this video was less a master class on LLCs and more about an actual example structure with the main reasons why it's that way in the first place.
Not sure what you mean by "for the sake of content" as in that case I would probably be doing staged prank videos in lieu of talking about my entity structure for investing lol
@@JackDuffley a general trend online is a lack of depth and in general, it makes sense given it’s specialized knowledge and depending on context, it should be paywalled for filtering. But I do find it surprising when doctors and lawyers make videos that gloss things over or share their setup and not the path and context of what led to it and the other combinations that were possible. It also would’ve been nice to go in depth into the trade offs, discuss “overhead” and more but again, that type of content is fairly exhausting and so it’s understandable. But I found this frusterating high level, but no worries. Also am UIUC alum so cool to see in the wild. I don’t have malice, enjoy your life and ignore my comments. I’m just a random commenter ;) , I personally am learning more about law in general out of interest, probably studying at law library made an impact. I’ll probably need to look more into M&A law and indexing on real estate legal setups may be my mistake.
Why don't you put your stocks in an LLC? Do you own them personally?
Do you have a separate bank account for each housing LLC? Or does it all go into the master real estate holding LLC’s bank account and that master LLC acts as a “property manager”? I just feel like having 5 rental properties and having 5 bank accounts to go with them would be a headache.
Each LLC has its own account. I would never want to "co-mingle" funds between entities or between myself and one of the entities. They need to be treated like the separate entities that they are.
That said, you can have multiple properties within an LLC (though watch out for occasional lender restrictions preventing you from doing that). But even so, it's probably not a bad idea to have a separate bank account for each property for accounting and bookkeeping purposes to keep things organized.
Which editing software do you use?
I'd have to ask my editor what was used here. Most of my past videos have been done on Adobe Premiere and DaVinci Resolve.