LAWYER: Don’t Form an LLC for Rental Property UNTIL You Watch This!

✅ Get YOUR Special Offer To Set Up Your LLC & Asset Protection NOW! https://appointment.strlawguys.com/sc... PICK UP JEFF'S BEST-SELLING BOOK ON ASSET PROTECTION AT AMAZON: https://a.co/d/3zC1Wx3 Rental property investors tend to get confused about opening an LLC for rental property, how to get rental property out of their personal name and how to protect rental real estate through LLC’s. Making the wrong move here could cost thousands in fees and worse than that - could cost you your asset protection if you are sued by greedy lawyers. I’m Jeff Hampton, asset protection attorney, best selling author of The Investor’s Blueprint: Asset Protection Made Simple & founder of STR Law Guys. What state you should open your LLC in for rental properties so that you can sleep well at night knowing your properties are protected from greedy lawyers. Always open up your LLC in the state where your property is located Why does this matter? There is a principle in asset protection known as home state rules control. In other words, if you are sued for a slip and fall or serious injury at your rental property, the law in the state your property is located will control during the lawsuit. That means if you open a Texas or Wyoming LLC to transfer a California rental property title into, you will not be able to use Texas or Wyoming law to protect your California property Think about it - if you are sued, you will be hauled into a California court, in front of a California judge and a California jury will decide the case. The court will not care if you set up a Wyoming LLC to hold a California property because Wyoming law will not apply during a California trial. So, if he plans to purchase a rental property in California, he should set up a California LLC, if you purchases property in Montana, he should also set up a Montana LLC. What about Texas? Yes, he should also set up an LLC in Texas. However, if he plans to purchase multiple properties in Texas, he could make it easier on himself by setting up a Series LLC in Texas to hold all of his Texas properties. What is a series LLC? A series LLC is an LLC that allows you to hold multiple properties within a single LLC for ease of use and convenience while also maintaining flexibility with each property if you are sued. What does that mean? Well, normally, if you put multiple properties into a single LLC, if a greedy lawyer sues you, all of your properties in that LLC are frozen and vulnerable to being seized if you lose the lawsuit. However, a Series LLC allows you to place each property into what is known as a “Cell” in the Series and you can file a single filing fee for the LLC, less tax returns and less maintenance on the LLC while also keeping a separation between each property in the cells so you don’t lose all your eggs in one basket. But wait - Greg wanted to set up these LLC’s for asset protection, right? Here is the problem - not all states are created equal. Some states have good LLC laws and other are downright terrible. Unfortunately, California is one of those terrible law states, whereas Texas is a strong state for LLC protection. How do we know this? Generally speaking, you want 3 protections when setting up an LLC: Privacy Charging Order Protection Single-member LLC protection Although Texas has some of these, unfortunately, California has none! So how can Greg protect his rental properties in California if the law there is terrible for asset protection? Let me introduce you to the Holding Company Strategy! By setting up a single-member LLC in California and completing the transfer of the asset into the California LLC, Greg can make the single member of the LLC not him but instead a Wyoming or Delaware LLC as his holding company? How does this help? Well, normally, if I wanted to sue Greg’s California LLC, I would go to the California Sec of State and they would tell me he is in control as a member or manager and I would perform an asset search on him. Also, if I won the lawsuit against him, I could get a forced sale order and Greg would lose his property to satisfy the judgment. BUT, if he makes the WY LLC the single member of the California LLC, when I get to the secretary of state in California they will point me to Wyoming because that's all we see. When I get to Wyoming, as an attorney I will learn there are privacy laws that I cannot see Greg PLUS I will learn he has charging order protection. So, the solution? You must first look at how strong your state laws are for your state because if Greg bought all his properties in TX, he wouldn’t need a holding company strategy! If you are a real estate investor and want a free strategy call to protect your assets, check the link in the description below to book a call, download our ultimate guide to asset protection for your rental property or check out my best selling book The Investor’s Blueprint: Asset Protection Made Simple.