There’s now denying that citizens of Connecticut are innovators, with nearly 400 years of history dating all the way back to Colonial times. While most Americans are aware the state is deeply interwoven with early American history, the actual achievements of the Constitution State are not always recognized. After all, Connecticut is both one of our original 13 colonies and home to both the world’s first telephone book and the world’s first nuclear submarine. So we know not to underestimate the sheer brainpower and drive of our Connecticut REIs.
If you’ve wondered how you can get a Series LLC, we’ve got answers. Here’s the real skinny on the Series LLC for Connecticut real estate investors.
Is There a Connecticut Series LLC?
Connecticut has yet to join the club and adopt the Series LLC. They’ve held out on this issue while 17 other states and Puerto Rico adopted their own. We’re not surprised to see the state that Colt Firearms calls home resisting, but you can still have your entity.
Fortunately, neither your hands or finances are bound by your state’s borders. You can form your Series LLC in any state that permits one.
What’s the Connecticut Investor Who Wants the Series LLC to do?
Recall the state motto of Connecticut: “He who is transplanted still sustains.” Well, in the case of real estate investing, the individual who willingly transplants their real estate company to another state. Just because you live or own property in Connecticut does not mean that you are stuck there legally. You’re a United States Citizen, so enjoy that freedom and wander into a better jurisdiction for real estate investors business owners.
You, like any investor, can actually select the Series LLC of your choosing based on the benefits that are available in your chosen state of formation. Studying some of the Series LLC options can be helpful in making this decision.
What Are The Connecticut Investor’s Series LLC Choices?
So of our current Series LLC choices, which ones are the best for you?
At the time of this writing, we consider these states to some of those we advise investors to consider for their Series LLC formation include:
- Texas. State-level income taxes are common, but Texas doesn’t. From an asset protection view, it’s a strong choice. Enjoy the savings and the other pro-business legislation the Lone Star State has to offer.
- Wyoming. Though a newer kid on the Series LLC block, Wyoming boasts strong asset protection laws. You’ve got added anonymity too, as there is no requirement to record names of members or managers on the public record.
- Nevada. The state has fewer legal requirements for LLC owners generally, and like Texas also doesn’t charge income or franchise taxes. The state offers investors flexibility in operations and strong laws modeled after our final state, Delaware’s Chancery Courts.
- Delaware. The grandaddy of all Series LLCs. Delaware was the first U.S. state to codify the Series LLC into the ordinary LLC legislation we’d find in every state. Not only did Delaware pioneer the Series LLC, but they also have business-specific courts (where judges are all business law experts) called Chancery Courts. They have a reputation for being friendly, but not biased towards, business owners.
Research these states, and compare their benefits and drawbacks. Of course, a legal professional familiar with asset protection will be best suited to help you, but coming in with ideas can save time and money. We hope Connecticut investors now have a better grasp of their true choices for Series LLCs.