How To Title Investment Property Fot Assett Protection
I currently own several homes with tenants in them. What is the best way to title property in California limiting my liability, increasing my asset protection, and still maintaining my tax right off. I was thinking a land trust with beneficiary being LLC in Nevada? Any help greatly appreciated.
moneypit,
I am not an attorney, and this is not legal advise.
I would suggest putting each property into an individual trust, or no more than 2 or 3 properties at most. . The trust would cost you less to set up, and still provide protection for you. Or a DBA would do the same, cost about $60 each, filing and publishing. Have an LLC or Corp own the DBA or have the beneficial interest om the trust. If you have them all in one DBA/LLC and get in trouble with one, your in trouble with all.
Ps/there is lots more, I personally prefer using a C corp as there are many more benefits (from what I know), then have an LLC own the C corp... Study up on both!
Hope this helps you.
[ Edited by ozzie on Date 05/11/2004 ]
Ozzie
Thanks for the input. I agree one trust per house, but what sort of trust? And where do you think I can get the forms to create it. I thought it may be useful to have the beneficiary of the trusts be an LLC for added protection
A Trust does not offer asset protection. They offer anonymity. Since it appears that you already own the properties, your name will already appear on the chain of title. So much for that idea. Talk to an attorney, and an accountant. Get an opinion about the assett protection facets of your situation from the attorney, and get the accountants opinion regarding any tax consequences you may have in changing things. You may find that incorporating or something else may be the best solution to your situation.
Good luck,
Jeff[ Edited by jeff12002 on Date 05/11/2004 ]
Appreciate the input thanks
This is no such thing. I just came back from a meeting with the FBI, IRS, and US Attorney. They new everything I have an "equitable " interest in.
Lori
[addsig]
If you want to go all out, do the land trust with the LLC as beneficiary, or separate LLCs as beneficiary for each. As noted, you’re anonymity is already somewhat compromised, so there is really no need to do the trust unless it’s to quietly bequeath the property to your heirs.
Just put each property in a separate LLC. This will limit the ability of folks attacking your assets as a whole. Well, supposedly. What you’re really doing is creating stepping stones of difficulty, like levels of a video game. If someone wants to find you badly enough, they will. And also as noted, the various government agencies will always be with you.
I personally do not understand the Nevada companies fad, as you will have to register as a foreign entity doing business in your home state anyway.
Quinn
[ Edited by agent89 on Date 05/11/2004 ]
The Nevada fad is a great idea. The ownership of a Nevada corporation is not public record, to find the owners you must get a court order, you can't get one of those without proving a need to have one in court. That costs a lot of money.
The IRS is the only one that can get the names of the owners without a court order. :-o
Thanks Quinn
I am not afraid of government agencies, as I am not trying to do anything wrong, as Lori indicated they know all. I am mealy trying to package my self in a best case scenario to limit law suit and creditor activity in a state such as California which is extremely litigated. Out of state entities do work here, if set up properly, it is a preferred alternative to CA entities. Any ideas on where to find a strong Land Trust contract and LLC operating agreement pertaining to California Real Estate laws.
Thanks for all input
Denis
You are completely correct, lots of benefits in Nevada, love doing business there