Incorporating.

[RE Taipan]

AroundTheWorld:

The Series LLC is an LLC hybrid that actually functions like more than one LLC. Let's say you have 4 apartment buildings and want to keep them all separate for asset protection purposes. You could have 4 different LLCs, with four different tax returns, four different filing fees (an issue in California, for example). The Series LLC would allow you to set up one Series and have each apartment building separate. But, it only counts as one LLC for filing.

Diane...from what you have said, this sounds something akin to the purpose a division could serve for a corporation -- would that be a fair analogy?

 

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[andviv]

I'm learning so much in this thread, my head hurts.

RE Taipan, great strategy, excellent explanation. Just out of curiosity, how expensive was to setup and maintain this structure? Why I ask? Cause I think it is important for all to understand that things with this quality do have a cost, but definitively it is much less than losing everything in the legal system. Rep++ ++ ++ ++

Wolfgang, F1 is awesome. Glad to hear I'm not the only fan here in the forum.

Diane, great idea about the Series LLC. I read about it recently and I think it does work here in VA. I will keep it in mind, and will research more about it, esp as I lately been investing out of state.

Easy, interesting to see what you are doing.

Thanks a lot to all for your input, this is one of the best threads so far.

 

[AroundTheWorld]

Thanks for the info Diane on Series LLC's. After a little poking around online, it appears that these currently available in the following states (from wiki) :

• Delaware
• Oklahoma
• Oregon
• Iowa
• Illinois
• Nevada
• Tennessee
• Utah

Bummer. Any other way to accomplish something similar? Protect real estate assets but bring administrative tasks and/or income under one entity?

 

[Diane Kennedy]

Hmmm I wonder how accurate the wiki list is, because I know that Alaska was one of the very first states to do them and they are allowed in California.

Maybe just patience...I suspect we'll see more states allowing them.

 

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[RE Taipan]

Andviv...like most things in life, there are a wide range of providers who charge a variety of prices. When I was looking for a Resident Agent, I had 3 criteria: 1) Level of Service, 2) Pricing 3) Proximity to the Sec of State's office in NV. I telephonically interviewed 4 providers. The one I ultimately chose was head and shoulders above the rest in all 3 categories. Surprisingly enough (or perhaps not), the others I called each went out of business.

For the provider I selected, their current rates run from $1950 to as low as $215. In addition to that, NV also requires the filing of a Stmnt of Domestic Stock and Annual Officers list. Fees for this are above those above. While I do not need it for my particular situation, the service I use can and does provide the level of help that is needed for those filings as well.

Hope that helps. Other questions, please just ask. Be glad to help where I can.

 

[Diane Kennedy]

RETaipan:

It is like a corporate division. Good analogy.

 

[AroundTheWorld]

I'm interested in learning more about corporate divisions as well...

• Does this mean that one division is not at jepordy for losing assets due to a problem in a different division?
• One set of tax returns, I presume?
• Can this be set up w/ an S or a C corp?

 

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[RE Taipan]

Around...

As to divisions...yes, if it happens, a division can lose assets w/o it affecting the other divsions...it takes some planning and of course a paperwork trail...but it can be done relatively easily if you plan. I try to always plan for the worst and work towards the best.

As for returns...I elected to have each div have a separate EIN as I was also building corp credit in the divisions names at the same time. The diff divisions allowed me to build separate corp credit files -- as well as legitimately use the other divisions as credit references for the others.

As for S or C....yes it can, but for my thinking, C is the only way to go...if you are a "S" corp, this means you are disclosing the name and SSID of each shareholder to the IRS in a doc that is a public record. If done properly, the whole "double corporate taxation" issue that causes people to make the S election becomes for the most part a moot issue. Additionally to me, making an "S" corp election defeats the purpose of wanting a corp for asset protection in the first place. If they don't know who I am, then they sure as heck don't know what I have.

Again, always consult an atty or other licensed professional before attempting this or any other action. Your results may differ.

Hope that helps

 

[Russ H]

Kevin-

We started with this book:

[ame="http://www.amazon.com/Own-Your-Corporation-Companies-Everyone/dp/0446678619/ref=pd_bbs_sr_2/102-9728392-5144162?ie=UTF8&s=books&qid=1189967828&sr=1-2"]Amazon.com: Own Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them (Rich Dad's Advisors): Books: Garrett Sutton,Robert T. Kiyosaki,Ann Blackman[/ame]

We then went on to attend one of Garrett's seminars, and hired his firm after that.

-Russ H.

 

[TaxGuy]

So much good info on this old thread it's worthy of a bump :smxB:

As you can see from my posts tonight, a lot of researching and head-spinning from how/what corporate structure to setup prior to starting my business for the 30DC and hopefully my "muse" as Tim Ferriss put it. The irony is that the structure I had for my franchise biz of an S-corp, formed in my state of residence, as advised by my accountant(my dad :coolgleamA looks like the best bet for what I want to do now.

Now when I start getting into "B" quadrant businesses and real-estate holdings it looks like series LLC is the way to go!

Also will throw props to RE_Taipan(still around? I know that's Chewsie's hubby and haven't seen her post in a while :nonod as I know someone who is starting a similar biz and that info will save hundreds if not thousands in legal fees, headaches and consultations!

 

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[Chitown]

RE Taipan,

What you just outlined can save one a fortune in antacid bills. Fantastic post.

Diane,

Thanks for pulling coattails with the Series LLC info. That will time with regard to admin duties.

 

[AvidFan]

I don't know if providing the resident agent's name/contact info is allowed on here (so as to appear as an "ad" for them) so if you need it, please feel free to PM me and I'd be glad to give you the resource/contact info.

Hi Taipan. I'm new to the forum but have read several of your posts. I'm in the process of incorporating a new venture and would really appreciate the contact info. Since I'm new, I'm not sure I can PM you but perhaps you won't mind PMing me?

Thanks in advance!

 

[CareCPA]

Hi Taipan. I'm new to the forum but have read several of your posts. I'm in the process of incorporating a new venture and would really appreciate the contact info. Since I'm new, I'm not sure I can PM you but perhaps you won't mind PMing me?

Thanks in advance!

Considering they haven't been on the forum in 15 months, I'd say your chances are slim, but not impossible.

 

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[AvidFan]

Considering they haven't been on the forum in 15 months, I'd say your chances are slim, but not impossible.

Agreed. But nothing ventured, nothing gained.