Traditional LLC with Anonymity for Real Estate Investors
A higher level of protection required for any real estate investor interested in forming an LLC
If you’re considering using LLCs to protect your real estate assets, you’re on the smart path to building your business correctly. But we want your business assets defended. Asset protection plans should include an entity or company structure appropriate.
These structures defend you by removing your assets from your personal ownership. The Traditional Limited Liability Company (LLC) is the best-known option for beginning this process.
But did you know that there is a new, exciting Anonymous version of the structure that can be even more powerful? Let us introduce the Anonymous LLC, its features, and the place it can serve in your asset protection plan.
PRO: Personal Security Guaranteed
The LLC is the legal owner of your property and assets. If something goes wrong with your business or personal life they cannot get to your money.
PRO: Simple, simple, simple
Texas LLCs are easy to manage. All you have to do yearly is comply with the registered agent requirement and file a “No Tax Due” franchise form online (which takes about five minutes).
PRO: Surprisingly Inexpensive
Texas LLCs have a one-time cost and no annual fees.
CON: All Your Eggs in One Basket
If the LLC owns more than one asset, a lawsuit involving one asset exposes all of the assets of the LLC.
CON: Expensive Tax Preparation
You can hold one asset in the LLC, but it is not ideal because each LLC will be required to file an annual tax return, pay filing fees and pay a registered agent fee.
CON: Not a Scalable Solution
Each LLC requires one-time fees as well as yearly registered agent fees and tax filings. The series LLC is a better option because after the filing you can create as many “LLCs” as you want with no additional costs whatsoever.
Royal Legal Solutions Can Help Real Estate Investors Find the Best Entity for Them
How Anonymity Prevents Lawsuits for REI Investors
Anonymity is a critical component of asset protection. There are multiple ways to preserve anonymity, including keeping a low digital profile. But we find legal tools secure anonymity are more effectively.
If integrity alone could protect people from lawsuits, Americans wouldn’t face 40 million suits yearly. The days of handshake deals are gone, but asset protection with anonymity can still protect you.
Financial incentives to initiate a lawsuit remain high, and real estate investors are targeted more often than ordinary Americans.
The best way to avoid losing in court is, of course, to never go at all. Anonymity helps us here, because if you don’t own an asset–but rather control it through anonymous structures.
Is my Anonymous LLC the same as a Traditional LLC?
No, or you’d know about it. LLCs are fine asset protection entities. They’re ideal for protecting a single asset, or for a shell company. But there are some critical differences between an ordinary Traditional LLC and the Anonymous LLC.
The first critical difference has to do with how LLCs are required to register with the Secretary of State in the state they are formed in.
- Most states make LLCs list members or managers
- These listings are accessible publicly online
- You can control an LLC through an Anonymous Land Trust to secure anonymity
But why buy two products when the Anonymous LLC does all of this for you?
How Does The Anonymous LLC Help Investors?
Reap the benefits of both LLCs
Essentially, the Anonymous LLC allows you to reap the tremendous benefits of both your LLC and personal anonymity.
- Anonymous LLCs save you time and money, offering many protections in one tool.
- Anonymous LLCs are versatile. Create a shell company, protect an asset, or simply formalize your business.
- Anonymous LLCs can prevent lawsuits from ever being filed when employed alongside or within a comprehensive asset protection plan.
Let’s elaborate on the last point. Your Anonymous LLC is a great start, and we encourage you to ask us any questions you still have. We’re happy to tell you about the latest and greatest offerings all day.
But you can also start thinking of what you want, now that you understand how flexible this option really is. The entity’s versatility warrants an explanation of greater depth, especially for those of you long-gaming your asset protection strategy. Anonymous LLCs can become anything, but there are reasons for our recommendations as to their best uses.
We know this entity to be as flexible as it is useful, but utility can drop dramatically if you use it improperly or don’t consult with a lawyer fully. The Anonymous Traditional LLC can serve two asset protections perfectly.
Let’s chat about those options briefly:
The beauty of the Operating Company or Shell Company approach is your many options. Operating companies separate assets from operations, an essential need for any high quality strategy.
A shell company can even become a “shelf” company that you hang onto for when you need it. These types of companies just lay around so it’s clear the LLC isn’t “new” which can have advantages for lending or REI transactions. But LLCs are also a secure way to hold a single asset, create an Operating Company for a multi-company asset protection structure, or even as a fully-functioning business with no asset protection role at all.
Your Anonymous LLC pairs well with other structures offered by most firms, is easy to create, and even easier to maintain with full-service corporate compliance services.
But You Can Have it All: The Anonymous LLC
The beauty of the Anonymous LLC is you get all the benefits of anonymity on top of the Traditional LLC’s strong protections. Check out its features compared to LLCs and Anonymity alone at a glance:
Lawsuit Prevention Benefits?
Obscures Your Asset Ownership
|Traditional LLC||Maybe – If used correctly||Yes, it’s the main function of the LLC||Yes, but the bare minimum. Best for one property/shell corps/operations||Yes, but stronger with anonymous structures on top|
|Anonymity Products |
(Anonymous Land Trust)
|Yes||No||Not alone, but helps prevent lawsuits.||Yes, but not entirely without an entity.|
Just to be clear, any block that says “Yes” may come with tons of caveats, but the big one is, all “yes” answers assume you formed the structure with an attorney’s help. The best product in the world won’t help you if it’s not crafted by an attorney who understands asset protection. Ideally, they should know about your situation, too.
traditional LLC is great if you only plan on having one asset or if you are holding a single asset on behalf of a partnership.
For every other scenario, the Series LLC is better since it provides the same protection as holding assets in individual LLCs; offers scalability at no additional costs; and streamlines the tax preparation and company filings as if it were a single company.
Ultimately, you’re the decision-maker about whether this offering will help you and to what degree, but we know it’s been useful to other investors. Many of our clients pay us to set up essentially this exact structure, but only now have we begun offering it as its very own product.
The new Traditional LLC with Anonymity could be the beginning to your new, improved asset protection plan. Let this good news sink in for now. Contact us for more information on how the Anonymous LLC can help you personally.
Invest In The Series LLC For Real Estate Investors
One of our most popular products because you can essentially create an infinite number of LLCs for the price of one.
Learn about our popular asset protection products
ASSIGNMENT OF INTEREST
An Assignment of Interest is the legal means for transferring the ownership of an LLC or other Company from one entity to another.
Our property transfer service helps clients move their investment properties into new corporate structures.
ROYAL PROTECTION PLAN
Our Royal Protection Plan is a complete asset protection plan that uses every tool at our disposal to make you and your properties judgment-proof.
An estate plan is a legal strategy that addresses how your money and other assets will be distributed upon your death.