Cookie Cutter LLCs
Lots of great insight and dialogue here, thanks. As I acquire more real estate, seems like I'd better stop buying in my own name and use LLCs. Apparently many investors use a different LLC for each property, usually naming them after the address or former owner to keep it all straight and to avoid triggering DOS clauses. When this is done, is it best to use a cookie cutter approach, just file another LLC with the state, identical to the previous one(s) except in name? Is it OK to use the same officer(s) and the same trust as the beneficiary of numerous LLCs? How many LLCs can one person have under his/her belt anyway?
Do you mean LAND TRUSTS? From your decription, I am led to believe that's what you mean and NOT LLCs. Please Clarify
Well, maybe I'm not clear on the difference; if there isn't a difference between an LLC and a (land) trust, please edify or refer me to an article or post that can. My question mostly pertains to the formation of a (or numerous), Limited Liability Corporation(s), to limit my liability to solely the property owned by the LLC, and for tax reasons.
[ Edited by loon on Date 02/13/2004 ]
A deed into your trust does not permit the lender to call the note or exercise its DOS clause.
An LLC does not get the same favorable treatment & a deed from you to an LLC might get the loan called.
Lots of discussion here about trusts & their hows & whys, and same for LLCs so if you have any questions about either there's lots of material here for your study.
Thanks, for the moment I'm only concerned with transferring new properties I acquire from my sellers (the ones I'm dealing with from today on) directly into LLCs I will create to own them, not deeding properties I already own into LLCs. Am I limited only by the number of LLCs I choose to pay (and file taxes) for, or are there other restrictions or perils?