@originaldohnthornton: Most real estate investors have been taught the same thing for years:
“Put every property in an LLC.”
Sounds smart…
until the lawsuit happens.
Because LLCs are pierced in lawsuits all the time.
Miss compliance requirements.
Mix funds.
Bad bookkeeping.
Improper records.
Now attorneys start attacking the corporate veil directly.
And here’s the even bigger problem:
LLCs are public record.
Which means attorneys and investigators can easily pull ownership records and start building a roadmap of your assets.
Property by property.
Entity by entity.
And while all this is happening…
the rental income flowing through those LLCs is still fully taxable.
That’s why sophisticated investors move beyond statutory law entities and hold real estate inside a contract law spendthrift trust instead.
The trust is not publicly registered with the state like an LLC / Corporation.
It can hold unlimited amounts of assets.
And when income-producing real estate flows through the trust…
there are no taxable events.
Plus, you get powerful lawsuit protection and far greater anonymity.
Same real estate portfolio.
Completely different level of protection
(Info purposes only; not a licensed tax, legal, or accounting professional) #taxdeductions #taxsavings #taxreduction #LLC #realestate
