How’s this arrangement… Let’s say I have 2 or more properties (each is an Apt building with a couple units each) each building is set up as a seperate LLC. (the LLC name generally matches the address, so the tenants write their rent checks to “123 Main St LLC” or whatever)
Now suppose each individual LLC has only a single-member, and that member is an overall Land Trust (IE: many LLC’s reporting to one Land Trust) of which myself and a partner are the beneficiaries. Would that work?
(Or should I have that the other way… each property is a separate Land Trust with the beneficiary of them all being a single LLC ?)
While both the land trust and single member LLC are transparent to the IRS the land trust is to obsure onnership while the LLC is to provide some liability protection. Better yet have the partner have an LLC and be a beneficiary of the trust also.
You mean have the partner (and presumably me too) have an LLC that’s a beneficiary of the Land Trust? That would be LLC → Trust → LLC. Seems a bit much, unless if I’m misunderstanding you.
Anyone else out there combining an LLC with a Trust as the sole member as I’ve mentioned above?
And a secondary question… what sorts of naming conventions does anyone here use for their LLC’s and Land Trusts? As I said above I’m thinking of having the LLC match the name of the address so that the tenant writes their check to “123 Main St LLC” and the Trust which is the sole member of all these LLC’s would be something like “XY Investment Trust” or something like that (“XY” being the partners initials) . Any suggestions?
This is just a general comment on convoluted structures. If you can’t find a business reason to justify the complexity, then the judge or jury will just assume you are up to no good and rule against you.