Hello! As new investors, my wife and I have acquired 3 rental properties and will be expanding to buy more. We are looking to formalize this business to keep its finances separate from our personal, as well as offer anonymity and legal protections...so we would like to form an LLC or a few.
Here are the details/complications
-1 property in CA, 2 properties in OH
-We have personal mortgages on properties
-We currently live in MA, but my wife's military service moves us often, and we are legal residents of different states
-We do not want to transfer title to an LLC directly to not trigger due-on-sale or mortgage complications, but set up a Land Trust per property with the Beneficiary as the LLC
Questions:
-Do we need a separate LLC to be the Trustee of the Land Trust? Could we personally be the Trustee or does that defeat the purpose of LLC anonymity and protections? If the Trustee should be an LLC, does it need to be an LLC within that same state? Does an LLC as Trustee complicate the mortgage situation or prompt due on sale?
-Does the Beneficiary LLC need to be in the state of the property (assuming yes) to avoid out of state complications like operating as a foreign entity? Going to initially set up the Trust as personally being the beneficiary and after transfer of title to the Land Trust, change the beneficiary to the LLC to avoid any potential due on sale issue.
-As a married couple, can we hold an LLC jointly but still as a SMLLC in OH which does not have the community property law?
-We would like to set up a SMLLC in NV, which has community property so we can hold the LLC jointly, and have this be the parent LLC to the state LLCs that will be the beneficiary of the Land Trusts for each property...1)would this parent LLC be the Trustee for the Land Trusts if the Trustee needs to be an LLC or will that trigger foreign entity issues? 2)if the OH LLC is set up as a SMLLC and therefore only one of us can be a member, does holding the parent NV LLC together offer ownership protection for the non-member of the OH LLC? 3) does holding each state LLC in the NV parent LLC still allow for pass-through taxes filed in our individual tax filing married, filing jointly, or does holding multiple state LLCs then make it a MMLLC?
-Since we will likely not be stationed in the states where we hold property/have the parent LLC, is this an issue for the LLC residency requirements...or does appointing a local registered agent company suffice?
Your help is appreciated and any suggestions on how to set things up are welcome!
Here are the details/complications
-1 property in CA, 2 properties in OH
-We have personal mortgages on properties
-We currently live in MA, but my wife's military service moves us often, and we are legal residents of different states
-We do not want to transfer title to an LLC directly to not trigger due-on-sale or mortgage complications, but set up a Land Trust per property with the Beneficiary as the LLC
Questions:
-Do we need a separate LLC to be the Trustee of the Land Trust? Could we personally be the Trustee or does that defeat the purpose of LLC anonymity and protections? If the Trustee should be an LLC, does it need to be an LLC within that same state? Does an LLC as Trustee complicate the mortgage situation or prompt due on sale?
-Does the Beneficiary LLC need to be in the state of the property (assuming yes) to avoid out of state complications like operating as a foreign entity? Going to initially set up the Trust as personally being the beneficiary and after transfer of title to the Land Trust, change the beneficiary to the LLC to avoid any potential due on sale issue.
-As a married couple, can we hold an LLC jointly but still as a SMLLC in OH which does not have the community property law?
-We would like to set up a SMLLC in NV, which has community property so we can hold the LLC jointly, and have this be the parent LLC to the state LLCs that will be the beneficiary of the Land Trusts for each property...1)would this parent LLC be the Trustee for the Land Trusts if the Trustee needs to be an LLC or will that trigger foreign entity issues? 2)if the OH LLC is set up as a SMLLC and therefore only one of us can be a member, does holding the parent NV LLC together offer ownership protection for the non-member of the OH LLC? 3) does holding each state LLC in the NV parent LLC still allow for pass-through taxes filed in our individual tax filing married, filing jointly, or does holding multiple state LLCs then make it a MMLLC?
-Since we will likely not be stationed in the states where we hold property/have the parent LLC, is this an issue for the LLC residency requirements...or does appointing a local registered agent company suffice?
Your help is appreciated and any suggestions on how to set things up are welcome!