How to Use a Series LLC | Mark J Kohler | Tax & Legal Tip


Mark Kohler here with another tax and
legal tip let’s talk about the series LLC now every year and other state
adopts this series lol stature and twelve or thirteen states that allow for
a series continues to grow and it’s always a variable moving target but the
series also is a powerful way to get protection for my investors that have
multiple rental properties now the series LLC only works in states where
there’s a series a series LLC statute in my new book I give a list of all those
series states in the appendix in your Google is defined what states might be a
series of get in there and find out if this
strategy will work in your state and here’s how it works so essentially the
normal problem people have is that they can say well all have one LLC and I’ll
put all my rentals in there well that’s kind of scary because all of your eggs
in one basket and it’s cheap and it’s easy but it’s scary having all of your
reynolds out there again in one little so what do we do then we go out and gets
cold and scared into having an LLC for everyone and that’s a nightmare right
it’s expensive and we’ve got wonderful asset protection but we got multiple
checkbooks multiple tax returns in its it’s overwhelming and there’s those
companies out there selling into the structure so watch out this is where the
series LLC comes in because it’s a balance between this little tip here at
the end of what you can do in a non-serious state but if you’re in a
serious state like Tennessee Utah Oklahoma Nevada again just to name
a few you can have in LLC and it can have baby subs that will act like little
LLC’s holding rental properties where you get extra asset protection in
between each one of these but you only have the cost of setting up one LLC and
one tax return so it gets to be really cost effective are you still have to
have multiple checkbox in the names for these different LLCs and you’ll hold the
properties in the names of those lol but the beauty again is the filing fee
savings in the tax return filing savings that can be really really efficient some
states like illinois it’s like a $50 filing fee for each LLC but when your
pain 604 LLC that’s a big deal in Illinois lot of safety texas has a
series of all sorts of states provide this option to set up as many babies lol
sees you want so look into it and see if it’s a good fit for you now for those of
you that are in a series LLC state I think you have to other options one
buying the balance that works for you with the number of LLCs that you have
you might put three to four properties in each LLC and its not an issue of
quantity but quality of your Reynolds and how much risk is involved you still
want some protection but you don’t want to overdo it for those of you that have
10 or 20 or more rental properties i love to create a parent LLC in a
charging order protection state another video encoder entities chapter in my
book you have this fellow senior Quality state and then set up baby LLC’s much
like a series of structure we have different Ellis season other states all
finally in 2011 tax return but you’re getting double layer protection for those of you that have a lot of
rental properties this could be a good fit so I guess in the big scheme of
things five options with the series LLC option right down here and find what
works for you but if you have rental properties get protection and find a
structure of the LOC model that fits you best in their american dream thanks for
listening and I hope that information was helpful and let me speak from the
heart here I’ve been talking about topics like this for ten fifteen years
I’m CPA attorney bestselling author radio show host and I am passionate
about helping small business owners say taxes bill wells and protected please
check out the link right here download my free ebook on 10 common
mistakes small business owners make in the tax and legal arena also I got daily
tips a weekly blog radio show every week this information is and I don’t love to
help you click below find out more about me and thanks for listening Subtitles by the Amara.org community

5 comments on “How to Use a Series LLC | Mark J Kohler | Tax & Legal Tip”

  1. E F says:

    Will there be any issues starting an LLC with one asset under a series LLC with the intent of adding another asset/business in the near future?

  2. Danielle Boyette says:

    If I set up a series LLC in my home state of DC, can I do business in other states without filing a foreign status? Please explain, tks

  3. Atom Gaming says:

    Great video and love the Playbook

  4. Omar S says:

    Thanks for sharing this. I’m planning on starting my own Series LLC with one property and adding more in the future. I had one question (more like a validation) if you don’t mind: Should I register the Series LLC as Type S or not?
    Thanks in advance for your response 🙏🏼

  5. Iron Alien says:

    Do you only need one bank account?

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