Whether you’re a current or future real estate investor, you’re likely interested in understanding the best way to organize and protect your properties. Look no further than the Series LLC for your real estate assets.
Many turn to traditional LLCs to manage real estate investments and haven’t heard of the Series version, but a Series LLC for real estate is one of the most effective entities an investor can form and offers many benefits to your real estate business. When you take advantage of this structure, you’ll not only be able to streamline and build your real estate empire, but you’ll also receive the benefits of lawsuit prevention and asset protection.
What is the Series LLC
The Series LLC is similar to traditional LLCs, however, instead of being one big company, the Series LLC is a network of LLCs. It uses a parent-child structure. Your parent company is its own LLC, and it can have as many “children,” or Series, as you have assets to place under the larger umbrella. Each asset will have its own LLC, complete with liability protections and many more benefits
Benefits of the Series LLC
The benefits of a Series LLC are many.
With the Series LLC, incorporating new assets is made simple. When you add real estate to your portfolio all you need to do next is a small amount of paperwork and have your attorney add it into the structure. One structure, Infinite assets.
Tax Benefits and Cost Savings
A Series LLC allows for pass-through taxation. Meaning you can avoid substantial corporate taxes and get to file profits on your personal return. For most people, this is quite cost-effective.
Additional savings are apparent when you consider how much it would cost to have each asset in its own traditional LLC and their annual fees. With the Series version, you’re getting an infinite amount of LLCs for the price of one.
Asset Protection Made Simple
A Series LLC offers the most powerful liability protection of any entity one could form. The reason for this is simple: each “Series” holding its own asset keeps it isolated from everything else you own.
How the Series LLC Prevents Lawsuits
You may think that you don’t need any additional protection from lawsuits because you run an ethical business, have insurance, and try to treat your tenants and customers well. Unfortunately, many Americans face a lawsuit at some point in their lives and the reasons landlords are sued varies greatly. Insurance can’t bail you out and neither will your good reputation. Lawsuits don’t even have to be valid or logical to cost you a big chunk of your hard-earned money. To avoid this, you want as much protection as you can get…and the Series LLC can have your back. In addition to being a less attractive target, the Series LLC’s isolation of assets means that if you are sued, only that individual asset is on the line.
How Do I Set Up My Series LLC?
Setting up the Series LLC isn’t difficult, but it needs to be done correctly. Investing in an asset protection plan is one of the best moves you can make as an investor, but if you don’t do it correctly, you won’t get the full benefits of asset protection. One mistake and the plan you’ve put into place could end up being completely ineffective. That’s where LexLaunch can help. It’s never too early to establish or strengthen your asset protection plan.
Don’t leave yourself vulnerable! We’re here to help you set up your Series LLC and everything else you need for a bulletproof asset protection plan. Our experts are here to advise you on what methods will work best for your individual situation. Take action and set up your Series LLC consultation with LexLaunch today.