Bryan, you have come to the right place. I just had this
question pop up with one of my clients here in CA with about
half a dozen rentals. I referred them to my friend, Mike Ross,
of Nationwide Incorporators (mikeross[at]nationwide-incorporators.com)
and he turns out to be an authority on the Delaware Series LLC.
I just heard about this form of doing business at a real estate
owners' trade show in September. There is one legal entity, the
Series LLC, which is made up of several sub entities which each
own one property. The property ownership can remain in the same
proportion as the individual ownership is before it is put into
the LLC. Although CA will require the DE entity to register as
a foreign entity, there is only one $800 fee to pay per year.
Each property is individually protected from tenant and other
claims as if it were separately owned by its own LLC. The
members, of course are protected from individual claims.
Contact Mike Ross for more information and possibly to have the
LLC formed.

Linda Dorfmont E.A., CFP, CSA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I have a four rental properties and will be purchasing more
in the future. Currently I'm in the process of determining
the best course of action regarding entities as far as tax
benefits. From everything I've read a LLC is going to be
the best choice to hold the properties. My question however
is does it benefit me tax wise to have another LLC or S-Corp
to manage the properties (I'm seeing references to this
through my readings)? I live in California, where it's my
understanding I'll have to pay a minimum of $800 per year
for each entity, so I'm trying to understand why if at all
this would be beneficial tax wise. If beneficial which
entity (S-Corp vs. LLC) and why?

P.S. I will be seeking the professional advice of a CPA and
attorney... I'm just feeling this out prior to doing so.

Regards,
Bryan Kent

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >