Tax Pros LLC

I just had one of the best coffee drink I’ve ever had at Hometown Smoothie‘s in Ovid. You gotta stop in and meet Michael, great guy, and amazing drinks.

3-Step Structure for Real Estate investing.

1. Create an Operating Company LLC for each property. The layering in the structure is important because these LLC’s will own nothing. This gives you protection against lawsuits and liabilities. This LLC will be responsible for managing the property, handling day-to-day operations, and generating income from it. It will lease the property from the Holding Company LLC. When setting up your LLC’s assign someone as the statutory agent for added privacy.

2. Create a Holding Company LLC. The holding company will own all the interest in the LLC’s. And when the property’s pays dividends, it goes through the holding company and not to you. This will provide further tax benefits as well. This LLC will be the owner of the property and hold the legal title to it. It will have no other assets or operations.

3. Create a revocable trust. This sits on top, and owns the holding company. This is where all of your profits will flow through.

By structuring it this way, the Operating Company LLC will be the entity conducting business and holding all the operational assets and liabilities, while the Holding Company LLC simply owns the property. This separation can provide some level of asset protection and liability insulation. Be sure to consult a Tax Attorney when doing this to make sure your 100% compliant.

Had a great meeting at Ryan’s with Jaclyn Hutchinson from LEAP. She was so helpful and kind. A great person to have in your corner.

Just had a great time getting to know Don McNally, from McNally Insurance Services here in Lansing. What a quality individual, and vary knowledgeable when it comes to deciphering your insurance needs.