Maryland is a lovely and lush state full of natural beauty and honest, hard-working people. Our Mariyland investor friends often write in with their questions about their best real estate asset protection options. Perhaps they already know that most REIs can benefits from the Series LLC, or they’re trying to figure out whether Maryland offers a Series LLC.
Unfortunately, Maryland investors cannot yet use a Maryland Series LLC for the simple reason that it doesn’t exist. Just under 20 states currently permit the Series LLC, and Maryland isn’t on the list. But you’ve got no reason to fret: you can still have your Series LLC.
Fortunately, the Maryland investor isn’t bound to playing by Maryland’s rules. One of the beautiful things about the American real estate industry is that you can choose which state’s “rules” you don’t mind playing by. We’ve gathered up a few of our top choices for Series LLCs for your convenience. Here are some of the states whose rulebooks we like:
Any of these states will deliver a fine Series LLC, and then it’s your responsibility to use it correctly.
It’s pretty simple: if you have real estate assets in your own name, you should consider transferring them immediately into your Series LLC structure. This removes the property from your name, and if you have an anonymous trust, the trust will hold title while the Series LLC defends the property by sticking it in a child series, by itself, protected with liability benefits and literally inside of its own company. All this company does is hold assets--and it should never interface with members of the public. If you have assets you value, you want them in a company rather than your own name. That’s one simple way to decide if you need a Series LLC.
The quickest way to figure out if you need a Series LLC over a Traditional LLC is easy. Just count up your properties. If you have more than one or plan to have more than one in the future, the Series LLC is the more economical option. File it once, and add child Series indefinitely as you acquire assets. You can easily create new Series at home or work within minutes, print it, fax it to your lawyer, and ask to transfer your new property into it. This way you can grow and defend your assets simultaneously.
Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.
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