What Are The Holes In This Corporate Setup?
If I establish entities in the following manner, to hold properties in multiple states from California, what holes would you find?
Top - Limited Partnership - California
General Partner = Nevada LLC with 99% liability, Nevada person as Registered Agent
Managing Partner = Me with 1% liability and decision making power and all profits
All properties will be held in separate Land Trusts with my attorney as the trustee and my LP as the beneficiary.
Is this good asset/liability protection? Good pass-through taxation?
Any suggestions, please?
cjmazur - thanks for the feedback - being in California - what are your thoughts on using the LP vs. the LLC? Would you mind sheding some light on the type of structure that you have set up (and for what type of deals this structure suits)?
Mantis,
You seem to know a lot about asset protection. I have a question that relates to the topic of asset protection. I am in Michigan and plan to acquire about 5 properties this year. I recently went to a few investors that I know have rehabbed and rented over 20 properties a piece. I was looking for help to get started "right" and they have never used anything other than a Michgian LLC. This goes against everything that I have been reading about. What they do is buy a property in their personal name (Non-Owner) and they quit claim the interest to the LLC. They then have the tenant to pay the LLC. Does this offer any protection because they all seem to think that it does? What are the pitfalls to doing it this way? I am confused. Please inform.
Sounds good - please let us know what the atty says...
What do you have to lose......filing fee and time?
However the clues were there when you first saw the home.
Anytime there are air fresheners in a home or a car for that matter, they are often trying to hide a smell.
I would also be concerned to what extent the real estate agent was aware of this problem.
Replacing carpet and even padding may not take care of it...............enzymes will do the trick.
NC_Yank
What do you have to lose......filing fee and time?
However the clues were there when you first saw the home.
Anytime there are air fresheners in a home or a car for that matter, they are often trying to hide a smell.
I would also be concerned to what extent the real estate agent was aware of this problem.
Replacing carpet and even padding may not take care of it...............enzymes will do the trick.
NC_Yank