Proper Use of LLCs for Real Estate

Hello Clint Coons, I'm here with Anderson Business Advisors and Law Group and I want to talk to you today about how to protect your rental

real

estate

. What is the number one tool we use as

real

estate

investors to ensure that if something happens, our real estate is We're not going to put it at risk because, let's face it, there are too many lawyers looking to take a cut of what you make and The easiest way to do this is to find people who have assets in their own names. You know there's a story I like to tell about one of my clients, this guy had a nightclub and what happened is two clients left the nightclub and as they were walking through the parking lot, the valet company that was parking the cars for that nightclub had given the car to one of the other customers they got into his car, stepped on the accelerator instead of the brake and he pinned these two customers against a nightclub.

Well, one of them lost two legs and the other one lost a leg. I know it's a tragic story, but what we learned from This Story is how lawsuits proceed because the plaintiffs, the two people who were injured, sued the owner of the nightclub, they sued the valet company, now both people were able to reach a settlement with their insurance, but what about the

proper

ty owner, I mean, if you ask this question? Most people today would be told, “Oh, the

proper

ty owner is responsible,” but you asked the same question. 25 years ago, people would say the property owner had nothing to do with the accident.

In reality, the only person responsible is the driver of the car, but no one. he wants it because he has no assets, he's in jail, but the property owner had his building in his own name and in fact the property owner had 20 million dollars in real estate in his own name, so when he arrived When reaching an agreement they looked at the property. owner and they said no, we're not going to settle for his insurance policy, we're going to go after him because he's a defendant with a lot of money and that's what happened and the owner ended up settling for a lot of money to do this.

The case goes away, now you contrast that with the owner of the nightclub, who is my client, the owner of the nightclub had all of his assets protected from him in various business entities; In fact, the way we had created that structure, you didn't even know that he owned the business entities and I'm going to share with you how you can do that with your own structure by establishing LLC and choosing an anonymity-compliant jurisdiction as well. Let's start talking about this now, if you have rental real estate, the number one entity you want to use is a limited liability company.

You don't use corporations because corporations create adverse tax consequences for you. I mean, I have real estate all over this country and some things I do periodically is transfer assets now if I had that real estate in it. of a corporation and I wanted to get the real estate right, that would be a taxable event, that's why I stick with LLCs to own my real estate to make sure I can move assets in and out of those LLCs and not incur a taxable event. Another reason we like limited liability companies is because they offer two forms of protection: they offer both internal protection and external protection.

Let me show you what I mean by that. With insider protection, what we're worried about if this is your LLC is that. If you have property here and you are down here and you own the limited liability company and of course you will control it if something happens in here, we don't want this to come out and affect us individually, that is the first form of protection that a Limited liability company is actually similar to corporations as well, but where corporations fall and LLCs continue is with external protection, which is equally important and probably as likely to result in a lawsuit as internal protection, external protection is where you are the source of the lawsuit, you have done something, your family has done something that gives you liability, you know, depending on the state you live in, the liability can be quite high for you, the example I just shared with you, that story. the people lived in california and california is a joint liability state, which means the property owner could have decided to fight that case, but the reason they didn't is because in california, if the jury finds that you is one percent negligent, then you are 100 percent responsible for all damages, just think about how that could apply to you if you are involved in a small car accident or maybe it's not you at all, maybe you get hit from behind and they push you towards another car.

What they have to prove is that you are one percent negligent and responsible for all of your damages. If all your assets are in your name, you are a defendant with a lot of money, so we want to get those assets out of our name. Collect our real estate and place it in entities that provide us with external and internal protection, and that is what a limited liability company does, if we sue you or someone sues you and they get a judgment against you, let's say the judgment is dictates against him. for three hundred thousand dollars and you have no assets in your name, so the question is what do you own?

If you show that you have this interest in this limited liability company, the question then becomes: can it be taken away from you? Well, states are not uniform. In this asset protection approach, some states like California and others allow the creditor to take away that interest, so you would lose your LLC and also your LLC and all your investments. Other states such as Nevada, Wyoming, Texas, do not allow a creditor. take the interest of your llc because they limit the creditor to a charging order and charging orders simply means that if you have cash from your rents that have been accumulating within that llc and you decide to take a distribution, remember that you decide because If you you have control of this entity, if you decide to take a distribution, then that distribution has to go here to pay your creditor because you have a judgment against you.

This is how the collection order works, it is basically attached as a lien to your interest, so when you take money out, you have to pay it to your creditor until your debt is paid off. Well, we know we're not going to make money and plaintiffs' attorneys know that too when you set up entities in the proper jurisdiction and you have this. type of control you are not taking the money out of your llc so these

llcs

will never pay and that is why when you use

llcs

in the right state these types of people don't get sued well actually rephrase they get sued but don't get charged, they always settle because the plaintiffs' attorneys know that at the end of the day there is nothing for them, similar to my story that I just shared with you with my client, the attorney on the other side realized that all he had at his disposal was the insurance that everything else was protected out of his reach and he was looking for a quick payday, so he took the insurance instead of trying to fight and win nothing at the end of the day, so asset protection with an llc two forms that we have inside, which are uniform in all 50 states and we have outside, and you want to make sure that your llc offers you outside protection, why only have one when you can have two?

And that's how you know when you're establishing a good limited liability company is the cornerstone of a great asset protection structure for rental real estate, one that provides both and I'll show you how you can find out here in just a second. Okay, let's get this out of the way now When thinking about forming a limited liability company, the question always arises: where do you set up your limited liability company? What state are you using now? I shot Wyoming and Nevada. Let's say I have property in Oregon. Would it make sense for me to set up?

I created an LLC in Nevada to own my property in Oregon. You'd be surprised how many people actually make this mistake: They own property here in Oregon and think that after we've heard about the benefits of Nevada and Wyoming, let's go here and create this. Nevada llc and then have him own our property in Oregon, then we will get all the protections of Nevada. Well, the problem is if you set it up in this structure, let's say you have a tenant who stops paying rent, what do you do? Most people would say simple Clint. you file an unlawful detainer action against him and he is a victim but the problem is if you have it set up this way you can't evict that tenant because his LLC is not registered to do business in Oregon so you are basically out of the law so now the dilemma is how to effectively manage your property if you are not registered to do business there and you don't then you end up taking this Nevada LLC and registering it in Oregon to do business in order to own your rental real estate now, that brings up another issue, some of those benefits that Nevada gives you, meaning if you set up an entity in Nevada Wyoming, you can have anonymity with your entity, meaning we could set it up so that your name doesn't. appears on it so that no one knows that you own this entity.

This is the cornerstone of an asset protection structure that is compliant with anonymity and ensures that if someone performs an asset search on you they will not know that you have assets because nothing can be traced back to you, my partner. toby mathis he and I founded anderson together, he is in over 17,000 entities in Nevada and Wyoming, meaning he serves as the official nominee director or manager of these various entities, so if anyone searches for the name of the entity, go at Mathis, don't you see our clients now might be wondering if Toby is in control, does he have any kind of say over the business entities?

He doesn't resign at all before we hand over the business entity, so he leaves. Our customers are in control, but now no one knows what the first benefit is. The second benefit of anonymity is the collection of orders. This is something that many people look for when creating an LLC in Nevada Wyoming because they have some of the best collection order protections in the entire United States. The problem is both protections. It disappears as soon as that entity is recognized in Oregon, meaning once you register to do business there, you lose those two protections. Most companies that create entities in Nevada or Wyoming don't tell real estate investors this because they want to make money. you and really that's what we are doing here when we create a structure, we use Nevada LLC to register in Oregon or any other state, in fact, you end up paying double the filing fees, you end up compensating the person or company that resides . in Nevada to give you a business address to give you a resident agent to give you anonymity to pay this person for a service for a benefit you lost as soon as you filed Oregon don't make that mistake so when it comes to setting up companies of limited liability for rental real estate, we have an initial question that we need to ask ourselves and that question is where is the property located, so I want to know where the property is. located I'm going to stick with Oregon here since we've already started talking about it.

Let's assume my property is again located in Oregon. For now, typically what we might consider is creating a limited liability company in Oregon, but we just can. We won't set one up right away until we know whether or not Oregon offers two forms of protection, that is, it offers internal protection and it offers external protection. Well we looked into it and found out that Oregon doesn't provide outside protection so now we have a problem if we create an llc for this Oregon rental that we own we know if something happens to the tenant we are protected but what happens if we get sued and It doesn't matter what state you live in, suppose you live? in Texas, but if you have an LLC in Oregon and it doesn't provide collection order protections, then that would be exposed to your personal creditors in Texas, so if you want those outside protections, then what we're looking at is where we file.

I will file in Oregon, well I will probably create a limited liability company in Oregon, but I also want asset protection so I know I don't want to own this Oregon LLC personally because if I get sued they can take it away from me so I want a buffer entity so I'm going to choose a jurisdiction that provides collection order protections, leaving out that I live in Texas, Texas provides collection orders so if I created a Texas LLC right here and had my own LLC of Oregon and then I own Texas LLC, now I have achieved my goal, that is, if someone sues me individually, I own Texas LLC which offers collection order protections, therefore I do not own this Oregon LLC, so there is no relationship between me and the liability companyOregon Limited.

Then they would ask me in a deposition, Clint, what do you own? I own a Texas limited liability company. I don't own Oregon. Oregon is owned by Texas LLC, so it protects those LLCs from its flawed charging order statutes. This is how we get or obtain two forms of protection, we have to establish an LLC in a charging order protected state like Texas. Now I did it because I lived in Texas and then I wanted to continue this example considering what happens if you want anonymity, now Texas doesn't. provide anonymity, so we cannot, or I mean, if we were looking for anonymity, we cannot use a nominee like in Matheson Texas to act as our initial manager of our limited liability company because as soon as you replace him, that information it needs to be sent to the Texas secretary of state and your name is there, so now the question is do we set this up in Texas or do we set it up in another state?

Well, I have worked with thousands of clients and those clients who want anonymity. compliance structure which is one where you can't trace any of your assets back to them, we start with Nevada or Wyoming, so instead of going with Texas here we end up setting up this entity, let's say we're going to go to Wyoming now creating this in Wyoming again . It has to be the first entity you create before you even start here because once your information is here the game is over, we can't do anything, we can't reverse it, once the horses left the barn, we won't be able to bring them back, so if we start. with wyoming and we use in mathis there so that you have anonymity, then I will go to Oregon and I will set up my Oregon LLC and when I file, there is a very important step here when you file this entity, so you will want to make sure that wyoming llc is a member of oregon llc, which brings me to my next point when you are creating an llc there are actually two forms of limited liability companies that you can create, you can create what is called a managed member and most attorney.

Set up Member Managed LLC just because they look at the person walking in and say, are you going to be the sole owner or you and your spouse? Well, let's keep it simple, we'll just make all the members of the managers that I disagree with in the In many situations, you either set up a manager-managed LLC and in a manager-managed LLC, the ownership is different from management, so you can have multiple owners, but you only have one or two managers, so managers control everything that owners don't really control. anything, there are two separate entities that we created here now, when I set up my LLC in Wyoming, I set it up as a manager managed LLC, that's how I got the anonymity.

Mr. Mathis is introduced as the initial manager, he resigns and then I am named the new one. undisclosed manager of this LLC, but when I go to Oregon I'm going to back out in Oregon, I'm going to set up a member managed LLC. Let me explain why this is very important. Did you write this when you form an LLC? whether as I said you are a member or managed manager, if you file a manager managed limited liability company then you must list the manager with the status. Yes, the manager's information is listed there, so if he is listed as the manager of this LLC, his name is.

It will be disclosed in the entire state database now, if you set up a member managed LLC then you need to list the members now, you probably understand where I'm going with this if I file this as a member managed LLC and I have my Wyoming. llc as your member, what happens? Well, when you file this llc, they'll ask you who the member of that llc is, you'll say, well, it's my Wyoming limited liability company, so this entity will point to this entity and this entity will then in turn point to this guy here, which is Mathis, so everything will point to him and no one will know him because he's kept his information private through this anonymity compliance structure that we're creating, so when he goes.

When creating your limited liability companies, you really need to understand member management versus manager management, internal versus external protection that your state provides to ensure that you get the best overall protection you can afford for your particular assets now that we have established When eliminating these entities, the next thing you have to decide is how you are going to tax them because that is equally important. I received an email the other day from someone who did not understand the difference between taxes and state laws and believed that if you set up an entity and treat it as a corporation, then it is a corporation for purposes of state law or, if ignored, it is a single member LLC for the purposes of state law, it is confusing you and you may have gotten confused there too when I started talking about taxes because you have not been exposed to this topic before, let me explain to you how llcs work, when You create a limited liability company, you can choose how you want to be taxed, that is a unique aspect of an LLC, the federal government states that once you have it set up, you can choose to be taxed as a C corporation, you can To have it taxed as an S corporation, you can tax it as a partnership with at least two members in your LLC or you can treat it as a disregarded partnership. entity now a disregarded entity is an entity that does not have to file a tax return, everything is reported to the individual members personal tax return, so if I set up an LLC like this and it is a disregarded LLC and this person is the owner, then any income here will appear on this person's 10 40.

What if it's a married couple? Well you might as well have two members and still treat it as a disregarded entity as long as they are a married couple so everything that matters to them flows into their 1040. this entity this llc will not have to file a tax return if it is a disregarded entity now if it's a partnership if it's set up as a partnership then we don't have to worry about that when you set up your entity as a partnership because we If you have two partners here, then this entity will file a 10 65 tax return, so which depends on how you choose or how you choose to treat it for federal tax purposes will depend on where the income shows up at the end of the 1065 year. is going to give a k1 that will flow down the individual's tax return, they will report that income on their return in your 1040, but you have to file two returns in this example, now going back to that ignored structure, I showed you two. individuals there who own it, what if we did this?

What if I created an entity down here and maybe this is that Wyoming LLC that we're talking about and I make it 100 percent owned by Wyoming LLC and we treat it as something ignored? entity very well now in this case what the government will look for is that any income here since this does not file a federal tax return will show up here well what happens if this is also ignored, which you can do and you have this person below? here and this person down here owns it pretty clearly, any income that is made here will go through this won't show up there, but it will show up here on your 1040.

So, you see, this can be a little complicated, which is really important here when you're setting up these types of structures and I see this all the time people make these mistakes day after day when they create limited liability companies they choose a tax status that doesn't match the operating agreement of their LLC, you know a lot of these protections that we discussed, you know anonymity and collection order protections, which come not only from state law but also come from your operating agreement. I reviewed an operating agreement for someone not long ago who came to my office who is using our platinum service and If you are not familiar with the platinum service, you should go to our website and check it out.

That is where you can get legal support for your business structures for a very low fee of thirty-five dollars a month. Unlimited support of thirty-five dollars a month if Your real estate investor encourages you to investigate this program. She signed up for the program and brought two limited liability companies that another group had set up for her and they were seven pages long. She says: What do you think? I looked at them. These aren't even juvenile operating agreements, they are juvenile in their creation, literally it couldn't be more blunt that they weren't set up as LLCs, even though they were supposed to be limited liability companies, they offered her zero protection if she stayed. with those limited liability companies and she was involved in a lawsuit, all bets are off, she could also own the properties in her own name, so this is a very important aspect of creating these types of structures , making sure your operating agreement provides you with everything you need.

The protections now we go back to this example, so we have this llc going up to here if they are both ignored and everything shows up on your 1040. So when you set up the llcs, you have to choose how you want them to be taxed and it really all comes down to to what your motivation is, it depends on the state you live in, what you want to disclose to your state, for example, if you live in California, I have a lot of people who have an LLC in Wyoming or an LLC in Nevada and they own LLCs in Oregon, Texas. arizona, florida, wherever they're investing and they choose to be disregarded so that nothing shows up from a tax reporting standpoint on their individual state return because they know that if this entity here was created as a partnership and produced a k1 california will then ask them to file 800 a year with this particular entity, this is how California works, if you have an LLC set up, even if you are doing business out of state, they claim you are doing business in California and you have to pay 800 a year to have it, so knowing this, you have to be careful when choosing to treat these entities from a federal tax standpoint per stat, most of the time, which I will recommend a client do when structuring this way. manner. with their llcs is that i will treat this holding llc as a partnership now the reason I want this entity here to be established as a partnership is because the irs came out in 2013 and they were very direct and said we are going to audit Real Estate Investors We think that Real estate investors have been underreporting their income than their deductions and we believe we can balance our budget at the expense of real estate investors.

Well, maybe they didn't come that far, but they've really taken a step forward. their number of audits on real estate investors i read about them every week another real estate investor falls to the irs when they get audited now there are many reasons behind this but the point is how does the irs know who to choose where they get this information it is your individual tax return, you know that when you have a bunch of rental real estate and you say it's in your own name or in disregarded entities, all of those properties show up on your 1040 schedule, so think about it this way and submit it. your 1040, your personal tax return arrives on April 15th and you have all of these properties listed on your return.

Do you think that will be flagged for an audit, given what the IRS has said and what they have done, you will be audited. or there's a good chance that it will, so one of the questions, one of the goals in asset protection planning is simply to prevent my clients from being audited, even if they would come out unscathed. It's no fun being audited. I've been through them before. and I can tell you that the scariest part of an audit is that a person auditing you doesn't understand what they do, they don't understand real estate, they don't understand depreciation deductions and how they work and how you can make an aggregation election. and Overturn everything that's overlooked, and then they make this decision, and then you have to appeal the decision, and at the end of the day, you spend a lot of money to prove that you're right.

I don't want to see you in that situation, that's why I'm going to create a company here, if I create this holding company that complies with anonymity and offers collection order protections and we turn it into a company, then what happens is that all the income from all these other companies that own your rental real estate that are flowing here, all of this will show up on a 1065 tax return that will be filed for that company. This 1065 will give you what we call a k1, it will give you your share of the profits generated. of that entity that k1 is attached to your return, deletes your schedule and does not appear there takes you out of the audit risk pool, that is why I use partnerships many times for my holding companies to ensure that my real estate investor clients are with the lowest risk of being audited, many audits begin based on the way you prepare your tax returns.

Make sure you prepare them the right way so as not to reveal too much information. This is my preferred structure now that we've covered it. where to establish your companylimited liability the different aspects of it what is important in deciding where to create your structure we have talked about how it will be taxed we have also discussed the difference between member managed and manager managed LLCs and why you want to choose one over the other, now I want get into properties because the biggest thing that always comes up is how many LLCs do I need for my rental real estate.

Well, a lot of this comes down to reason. Well, I've dealt with people. Before that, I have a lot of real estate, they will come to me and show me that they have 25 properties and they will say, Clint, I want 25 limited liability companies. Now I'm a lawyer. Fee for establishing LLC. I'm not going to rule out that business, but I will first ask you why we need to get to that point. How many properties, I mean, what is the equity in your property? Do you really think you need 25 entities sometimes? I'll look myself in the eye and say I don't want to lose more than I have to in the event of a lawsuit, structure me with 25.

Okay, I'll do it now, other people when we have that conversation I told you about. the reasonableness of their structure and I explained to them that when I'm looking at properties what I'm really focusing on is the equity of the property. I'm looking at the type of property it is. Is it a neighborhood where you need a shotgun to collect your rents or is it a higher income neighborhood where the tenant mows the lawn and keeps the property in order for you, so you need to determine that as well when deciding how many properties I should put on one possible limited liability company. and I also look at how well cash flows from the property.

I mean, the last thing I would probably want to do is take some of my better-performing assets and put them with some of the lower-performing assets even though I was doing it on an equity basis and what I mean by that is this: Let's say an individual investor had four properties and property number one had equity of one hundred and fifty thousand dollars. Remember that equity is the difference between what the property is worth and what you owe on it. It is the middle number, that is what you stand to lose in a lawsuit. Okay, property number two has fifty thousand dollars in equity.

Property number three has two hundred thousand dollars in equity and property number. four uh we'll just give you a hundred thousand in equity now I also want to know how profitable these properties are let's say property number two is we'll give you a uh we get force four highly profitable property number two of x gets uh the property Number four of two x's has three x's and property number one only gets one x, so now I have an idea of ​​where the most valuable asset is in this combination of properties. It may not have a lot of equity, but it produces a lot of a lot of cash flow and remember that's what you're living off of, that's the money that comes in, someone uses it to invest in other properties, so this property is very important to you as a real estate investor, so what we could do here is look at the equity of the properties by looking at the income and then make a determination on where we should group them, so in this particular example I would probably take two and four and the I would put in a limited liability company, you could possibly even add three in there if you add three, then you would have three hundred and fifty thousand dollars in total risk exposure, so your structure would look like this.

You would have one LLC here with three properties and you would have another LLC here with just one property. Now most people will probably split them up and put two properties in each, but it really comes down to your personal risk tolerance level. I can't make that decision for you. I can give you some ideas on how you'd like to structure them, but again, it's whatever you're comfortable with. What is the price per person who wants to have an LLC per property? Great, I could do it. In fact, in a later series I will talk about the limited liability company series, which is a timely entity if you live in the right state and have properties in specific states to use to ensure that you have the best form of protection at least for the minor. cost and that's something we'll save for a later date, but by the time you decide what properties you need to put in the llc, how many you need to create, it becomes a matter of grouping the shares because remember, at the end of the day, when you create a company of limited liability, you have to have a bank account, if you have 25 llc, you need 25 bank accounts because you are running a business, this is a step that many people skip at their own risk, they do not understand the importance of the LLC having an account bank and when I say they lose it at their own risk, I've seen it before.

I have seen a lawsuit that devastated an investor's entire structure because this investor thought he could get away with not having bank accounts for each of his limited liability companies. All they did was have a management corporation and they thought they would manage all the money through the management corporation in In fact, their CPA told them they could structure it that way. Who do you advise a certified public accountant or real estate attorney who understands how these structures work? In my next segment, I'll cover how to flip properties if you're an investment expert. If you're going out to buy and sell real estate, I'll explain to you how important it is to set up the proper entity and that your local attorney or your CPA is probably giving you the wrong advice, but that's what I'm going to say for another segment, another aspect of LLCs before we finish here is how properties move well, so we've talked about how many properties I would possibly put into limited liability companies, but the next step is to deed them.

Now there are some differences of opinion when it comes to how to place properties in limited liability companies. Suppose in my example we have two LLCs set up and we have our properties down here and we're going to put two per llc, just deed like this, some people would say yes, deed to the properties and now you have protection because the property is now out of your name. , well, I would tell you to be careful, don't eat them directly if you have debts on that property, understand that when you need the property in your name in the limited liability company, you run the risk of the bank accelerating your promissory note, it is That is, you violated the due clause in your mortgage and it gives the bank the right to cancel your notes also if you have 10 residential mortgages, it will be difficult to get another mortgage or refinance those properties with a new mortgage if they cancel your note because you transfer the properties to an llc and They find out now.

I heard attorneys tell me that they had never heard of a situation where a bank required a real estate investor's note to mature when they transferred their property to an LLC. your experience working with real estate investors I have worked with real estate investors for 17 years and I have seen what happens to real estate investors. Now, there are those outliers where people find themselves in situations where they forget to pay their mortgage, they are not insuring their property, yes, that will get the bank's attention, but how about the situation where Does the bank have an insurer that comes to verify the mortgages they are issuing and withdraws some mortgages and finds out? the borrower does not own the property the borrower has transferred the real estate to a limited liability company in fact the borrower transferred 10 properties to a limited liability company that is a true story, it happened that the bank chased that borrower to transfer your property and called them notes because of other situations the bank is going to sell your mortgage now people are not only going to buy all the mortgages that the bank has to offer, they are going to inspect those mortgages, if yours is inspected, they may They discover that you are no longer the owner who puts it in an LLC, so now the bank is knocking on the door.

I'll give you another reason why you should seriously consider before transferring your ownership directly to an LLC and that has to do with the importance of this acceleration clause. Interest rates are rising and will likely continue to rise. If you have a great interest rate on that house, do you want to put it at risk? If I'm in your situation, I guarantee you not. I don't want to put myself in a situation where I can lose it because from the bank's point of view, if interest rates go up three four five six percent, they have every incentive to look at their loans and find out if the owner or the borrower The property is also the owner, if not, why not force that person out of that four and a half percent mortgage and into a 10 percent mortgage?

There is more money to be made there, so be careful now what I would suggest you do and what we have What I have been doing for years here at Anderson is that we do not transfer property directly to an LLC unless we get this, unless that there is no debt, if the property is not covered by debt, then what I want to use is a land trust, okay, this is it. The entity that will prevent a bank from accelerating your note and allow you to transfer your real estate out of your name and into an LLC without alerting your lender to the fact that there has been a transfer;

In fact, if you set it up correctly, you can get anonymity so people don't even know that this property is owned by the LLC. There is a lot that can be done with the Land Trust to protect real estate. Like I said, I've been doing it for 17 years and I've had clients. who have been in situations and lawsuits before and have had to deal with banks and have no idea what has been going on with their real estate because nothing appears in the public record other than the land trust, no one knows where they own it in this moment.

It's a very important topic and one that most real estate investors overlook, well not you because in one of the next segments I'm going to delve into the benefits of land trusts and show you how they can benefit you when it comes to of real estate. real estate investing, you know, I hope you learned something today regarding limited liability companies and how those entities should be set up from an asset protection standpoint. We at Anderson work very hard to ensure our clients' assets are protected because that is what makes this unique. What differs from local lawyers or these internet gurus who sell business entities is that we are not only a law firm and we are also a tax firm, meaning we have both the tax and legal matters in-house, we are also assets estate. investors, I flip properties, I own commercial real estate and I own residential real estate, you know, if I haven't closed the deal, I have clients that have closed the deal, so we have extensive knowledge, there's a reason why We have over 50 employees in our company working with real estate investors like you to ensure that your taxes are minimized but the protection of your assets is maximized while complying with real estate investment regulations.

These are things I will share with you. Upcoming Segments My name is Clint Coons, Managing Partner at Anderson Business Advisors in the Legal Group. Feel free to call us and we will provide you with a free structure. We will explain what you should do in your situation to ensure that your assets are protected. All the best, take care of yourself.