Should You Get an LLC for Rental Property? (Costs, States, etc.)

"I know some of the legal strategy may not sound exciting, but understanding it can save you so much money in the long run."

"So, a lot of like the pitfalls with real estate is, you know, an incident happening and then you not having anything in place and then saying, 'All right, I'm now getting sued, Brian. Like, I don't want to lose my property. What can you do for me now?' There there's literally nothing."

"cutting corners and like online templates, diying your planning just doesn't work. Yeah, it's cheaper, but it's just a false sense of security and a smoke screen. And it's really not cheaper if you lose."

"the veil's fragile. It can be easily pierced just by not following the formalities of setting up an LLC and maintaining it."

"So if you have a liability issue in California, meaning a lawsuit, the judge is going to follow California law, not Wyoming law... if it's a Florida property, it would be a Florida LLC because that's where the damage is going to come from"

"the first property, don't invest in your first property unless you can afford creating an LLC... If you cannot afford an LLC, push pause. Start off smart. Don't risk it. That's too risky."

"the thought that you can just create an anonymous Wyoming LLC... and disappear and ghost lawsuit... that's just completely false... privacy does not equal protection. Privacy helps stop harassment, but it does not make you lawsuit proof. Once a legal action is filed, privacy does not prevent legal disclosures in court."

"The ideal strategy involves forming LLC's in the state that the asset is located in and then establishing a complete asset protection system that's layered and then that leverages the strongest jurisdictions for actually the next two layers, the management company and most importantly the asset protection trust. And that's where the magic happens... The real strength comes from the teeth which are the asset protection trust."

"the family revokable living trust, your estate plan... is not an asset protection trust... They have no ability, the estate plans, to protect your assets from lawsuits whatsoever"

"Land trusts are just a privacy mechanism. They're not a protection mechanism... when the LLC gets pierced, it falls apart."

"the problem with purely domestic US-based asset protection trust is that courts are constantly piercing them... judges can just say do it or I'm going to hold you in civil contempt of court because it's your decision."

"If you use like the Cook Islands it's no longer in your authority for that situation. That's where the offshore trustee can say no... and you can't be held in civil contempt of court because it's not you saying no. It's the offshore trustee and the US has no control or authority over them."

"you got to be really particular on the type of attorney that you go to because your standard estate planning attorney, they're not going to know these nuances... what works for asset protection purposes."