How Series LLCs Can Benefit A Real Estate Investor
If you are a real estate investor, then it may be a good idea for you to consider forming a series LLC. This will help you to keep your costs in check, and it will also help you to minimize your legal risks. If you're looking for a place for more information on a series LLC, then this article can help you find some of the information you're likely looking for.
An introduction of a series LLC
A series LLC is also commonly referred to as an "SLLC" and it is a form of limited liability company that lets you form a parent LLC which acts as the main LLC. Then, there will be smaller LLCs that fall under that parent LLC. These smaller ones are commonly called cells, and they will each have their own protection that's going to be separate from the others. As a real estate investor, it will be important for you to know that each of your investment properties will be protected and that you are also protected to the fullest extent possible.
The benefits of a series LLC
As touched on above, by breaking off into those separate LLCs, you will be able to protect all your investments without worrying about the possible problems with one affecting the others. This offers layers of protection. For example, if someone is injured on one of your properties and that cell gets sued, the others aren't going to be liable. The other option for you to have this level of protection would be for you to set up a separate LLC for each one of your investments.
The cells will each have their own names, their own bank accounts, and their own separate records. Keeping things separate in this manner can also help to make things like money management and record keeping much easier.
When you decide to go with a series LLC, you will only end up paying the one formation fee to file. The other cells will go under that parent LLC and be covered under that original fee. This saves you money on not needing to pay for separate LLCs for all your investment properties. You'll also be able to file all the cells and the parent LLC on one tax return as well.
Conclusion
When you are a real estate investor, things like protection, expenses, and convenience will be important. The series LLCs give you these advantages.
For more info about series LLCs, contact a local company.
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