I read several of your posting and I still have several questions that are more specific towards my situation.
Personal Residence in CA…. I understand that I need “deed the property to a trust make the beneficiary the LLC”. What is the role of the “trustee” in all of this? Do I even need a “trustee”?
Rental Property… is currently out of state and being manage by management co. I plan to hold the property for at least 3-5 years. Should this property be in a trust also? If the beneficiary is the LLC, is it better to create LLC where property located or in CA?
For wholesaling and rehabbing is the LLC the better that S or C Corporation?
the trustee owns the property on behalf of the beneficiary. LLC takes beneficial ownership and is entitled to all ownership benefits. you rent from the LLC (bona fide business purpose)
if you own it in your personal name, your other personal assets are at risk from liabilities at the property. the idea is to get the property out of your name either through a trust arrangement or to sell/refi the property into an entity.
LLC is a stronger entity.
Corporate stock (including S- shares) is considered an “investment”. As such it is available to satisfy a judgement creditor against you personally. So when you rear-end someone in a pinto, they sue, you lose, they can be awarded your “investments” including the stock you own in AKT, Inc. Now they own the company that owns the property. game over.
LLC member interest is considered “personal property” by statute. As such it is NOT available to satisfy judgement creditors.
Both corporations and LLCs protect you from the company’s liabilities, only the LLC protects the company from your personal liabilities.