Where you live certainly can influence your Series LLC options, and which states you should consider forming your company in. If you plan to use a Series LLC holding company, you may have in-state options--but whether these are worthwhile, let alone your best, is a decision that must be made with the help of an attorney.
Yet time and again we get questions about what asset protection looks like in a given state. The truth in Virginia is the same as everywhere else. In reality, the Series LLC for Virginia investors offers many benefits and can take many forms.
The Series LLC isn’t ubiquitous by any stretch. Not all U.S. states have legislation defining this entity, therefore many investors will necessarily form beyond their state’s borders. This is a common, valid, and safe strategy.
For Virginia investors, the first question is typically whether there is a Virginia Series LLC. In short: no. But you need not be confined simply because your state’s business legislature has yet to get with the program.
Let’s just begin with the assumption that the Series LLC will be helpful to you, either now or in the future. It is for essentially any investor who has multiple assets or plans to scale up over time. You still have some choices to make.
You can choose which state’s “rules” you’d like to play by. We have some pretty well-known opinions on the best states for forming LLCs, but will elaborate a bit here wtih the Virginia real estate investor in mind.
Weigh your options, and above all, get the opinions of the experts you trust most.
Your Series LLC should above all be tailored to you and formed with the assistance of a qualified real estate asset protection attorney. If asset protection is even a partial motive in setting up your company, it’s best to work with an expert. In the meantime, you can always educate yourself. We like educated clients, and find investors who are more informed about the structure advocate better for themselves as well. Feel free to use our free resources to bone up on the benefits of the Series LLC.
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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