to form the Wyoming LLC (as you've recommended), the Registered Agent in Wyoming requires you register the Wy LLC in California (I got that far and backed out) as that would cause anonymity to be lost, or if the Wy LLC is disregarded, then you don't need to register the LLC in California (I own property out of my California residence)
Thanks for great video. Does this applies to any business or only to real estate e.g. if I want set to setup LLC for IT consulting in Wyoming LLC and using WST as you mentioned in video as a CA resident. Would it avoid paying 800$ per year FTB fee in CA
Love your content 👏 I have a good question for you. What if I, myself, file the Wyoming LLC and do so on an annual basis, which will list me as the organizer, will that blow my privacy?
2 questions: 1. Isn't there only single $800 to pay for WY LLC, bc I wouldn't own other LLCs, the WY would own them. And they are not doing business in CA, bc I am telling WY LLC to what to do 2. If no one can look up who is owner or member of WY LLC, why do we need WST? Isn't it enough with just WY LLC? Or it is possible to look me up by name and see I am member of WY LLC?
This is awesome! How does this influence my LLC's as pass-through entities when it's tax time? The depreciation from my properties owned under this trust still eligible againt my taxes as an individual?
This is new to me, I live in California, I opened an LLC in Indiana roughly three years, never moved any of my 5 rentals into it (pandemic stalled me). I am currently in process of learning how to transfers title to the LLC. I’m very interested in this as I never wanted anyone to know what I own.
If I live in California and have a STR arbitrage business here, I want to protect my self with anonymity, if I open a WY LLC that owns my CA llc I’ll have to pay the 800 tax twice now?
I am in CA and own in CA .. while doing the WST--- WY LLC method can I also add my children as beneficaries while I am at it? and can I then register my cars under the state of Wy?
If you use the cars in California, you will need to register them in California. I do not understand the children's question. You children, unless you are asking, can you make them beneficiaries of the WST. If so, the answer is yes, and by making them a beneficiary, you are providing them ownership of the assets held by the WST.
What about the EIN number for each LLC? The IRS has the name and SSN for the principal party which will be a CA resident and is public information. What's the solution for that?
The example you use uses one property. I have three rental properties in California. How do I approach it? Do I take out a WY ST LLC for each property and link them all to a single WY LLC? Or do I create the description structure for each property independently?
Does it have to be a WST and a Wyoming LLC? I have a Delaware LLC. Can I create this type of structure using a Delaware Statutory Trust and have the same benefits? It appears that DST acts like a series LLC. So if I have multiple properties does it make sense to create cells in DST instead of several WST?
As a CA investor looking to invest out-of-state, thanks for the video Clint! Question: In other videos, you recommend for the Wyoming Holding LLC to be set up as a partnership so it can be issued a K-1 on Form 1065. How can it be a partnership if it's owned 100% by the Wyoming Statutory Trust?
@@ClintCoons Thanks Clint. Could we also eliminate the WY Holding LLC, and simply have the out-of-state LLC (which holds the property) owned 100% by the Wyoming Statutory Trust? Would that maintain anonymity? I saw you mention this structure in a Q&A video 8 months ago.
@@ClintCoons Thanks for clarifying. I guess that means CA investors can't both avoid paying CA Franchise Tax AND get a Form 1065. We would have to choose between one or the other 😞
Hi Client, is the Limited Partner structure you mentioned in your 12/16/2020 video still valid? I'm a CA resident having rentals both in and out of the state. Thanks!
what if i live in CA and have a Wyoming holding company that owns California/AZ/NV/OR, subsidiaries and these subsidiaries own rental properties and the subsidiaries all collect rental income and pay my Wyoming holding company management fees, does that make my Wyoming holding company subject to paying a CA franchise tax?
What if I live and invest real estates in CA? If I want asset protection then I have to create CA LLC for each property and pay the $800, is there any way to avoid in that case? Thanks Clint
Clint can correct me if I am wrong but if you register a WY LLC in another state as a foreign LLC, you could loose the charging-order protection in that other state … I think. You would want to create a child LLC owned by the WY one, which Clint describes … I think.
ffs, seriously hate California and their Tax, we had to move here a few months ago to be near family. We setup the LLC for a property in Washington state while we lived in WA. Now we moved to Cali, we will need to pay that franchise Tax? If we setup the Wyoming LLC and Trust, will we be liable for FT for the time in between becoming cali residents and setting this up?
Great info on avoiding California franchise taxes.
Glad it was helpful!
to form the Wyoming LLC (as you've recommended), the Registered Agent in Wyoming requires you register the Wy LLC in California (I got that far and backed out) as that would cause anonymity to be lost, or if the Wy LLC is disregarded, then you don't need to register the LLC in California (I own property out of my California residence)
You received bad information. We set these up every day for CA residents and the WY does not have to register in CA.
@@ClintCoons Thank you for your reply, I feel honored and appreciate your time.
What a scholar and gentleman,
It’s because of your videos that I’m educated. Am platinum gonna be enrolling in titanium. Super excited!
Thank you.
Thanks for great video. Does this applies to any business or only to real estate e.g. if I want set to setup LLC for IT consulting in Wyoming LLC and using WST as you mentioned in video as a CA resident. Would it avoid paying 800$ per year FTB fee in CA
Love your content 👏
I have a good question for you. What if I, myself, file the Wyoming LLC and do so on an annual basis, which will list me as the organizer, will that blow my privacy?
Yes
2 questions:
1. Isn't there only single $800 to pay for WY LLC, bc I wouldn't own other LLCs, the WY would own them. And they are not doing business in CA, bc I am telling WY LLC to what to do
2. If no one can look up who is owner or member of WY LLC, why do we need WST? Isn't it enough with just WY LLC? Or it is possible to look me up by name and see I am member of WY LLC?
The Trustee LLC would be responsible for $800 but the other LLCs are held by a WST that would exempt them
Hello CLINT, have a Great 2023 and Congratulations for your New Video, you´re the Best😁💯
Happy new year!
This is awesome! How does this influence my LLC's as pass-through entities when it's tax time? The depreciation from my properties owned under this trust still eligible againt my taxes as an individual?
All of it will hit your 1040 like it does presently.
This is new to me, I live in California, I opened an LLC in Indiana roughly three years, never moved any of my 5 rentals into it (pandemic stalled me). I am currently in process of learning how to transfers title to the LLC. I’m very interested in this as I never wanted anyone to know what I own.
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
If I live in California and have a STR arbitrage business here, I want to protect my self with anonymity, if I open a WY LLC that owns my CA llc I’ll have to pay the 800 tax twice now?
Yes.
Also, during tax season, won’t California franchise board know about your rentals when you report them ?
Yes you must pay tax in California on all your income.
It’s not in an LLC so they can’t apply the franchise tax
I am in CA and own in CA .. while doing the WST--- WY LLC method can I also add my children as beneficaries while I am at it? and can I then register my cars under the state of Wy?
If you use the cars in California, you will need to register them in California. I do not understand the children's question. You children, unless you are asking, can you make them beneficiaries of the WST. If so, the answer is yes, and by making them a beneficiary, you are providing them ownership of the assets held by the WST.
I have two businesses in CA, both LLCs. Is it advisable to transfer them to a Wyoming Statutory Trust?
Just a question - won’t the member Wyoming LLC owned by the WST need to get registered in CA or we just ignore it as no one knows who owns it ?
No because it is not doing biz in CA.
Which LLC do you open first? Do you setup the parent Wyoming LLC before you buy the other properties?
Wym first because it would be the entity manager.
Set up the WST and WY Trustee llc first
@@ClintCoons Thank you
Excellent.
Many thanks!
What about the EIN number for each LLC? The IRS has the name and SSN for the principal party which will be a CA resident and is public information. What's the solution for that?
Make a Wyoming Statutory Trust the member of the LLCS
The example you use uses one property. I have three rental properties in California. How do I approach it? Do I take out a WY ST LLC for each property and link them all to a single WY LLC? Or do I create the description structure for each property independently?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Would this be good for an online only small business from California?
Does it have to be a WST and a Wyoming LLC? I have a Delaware LLC. Can I create this type of structure using a Delaware Statutory Trust and have the same benefits?
It appears that DST acts like a series LLC. So if I have multiple properties does it make sense to create cells in DST instead of several WST?
Yes you can
As a CA investor looking to invest out-of-state, thanks for the video Clint! Question: In other videos, you recommend for the Wyoming Holding LLC to be set up as a partnership so it can be issued a K-1 on Form 1065. How can it be a partnership if it's owned 100% by the Wyoming Statutory Trust?
The WST would be set up as a partnership and the WY LLC is disregarded.
@@ClintCoons Thanks Clint. Could we also eliminate the WY Holding LLC, and simply have the out-of-state LLC (which holds the property) owned 100% by the Wyoming Statutory Trust? Would that maintain anonymity?
I saw you mention this structure in a Q&A video 8 months ago.
@@RomainC99 Yes that works as well.
Yes you could set it up in this manner but the WST will be subject to CA franchise tax because it is treated as a partnership.
@@ClintCoons Thanks for clarifying. I guess that means CA investors can't both avoid paying CA Franchise Tax AND get a Form 1065. We would have to choose between one or the other 😞
Hi Client, is the Limited Partner structure you mentioned in your 12/16/2020 video still valid? I'm a CA resident having rentals both in and out of the state. Thanks!
Yes, it is
what if i live in CA and have a Wyoming holding company that owns California/AZ/NV/OR, subsidiaries and these subsidiaries own rental properties and the subsidiaries all collect rental income and pay my Wyoming holding company management fees, does that make my Wyoming holding company subject to paying a CA franchise tax?
Yes it does if you own the WY LLC
Does this strategy work for non real estate investors? Like people who just want to have multiple llcs in California?
Yes but you will want to determine if it is the right structure for your business.
What if I live and invest real estates in CA? If I want asset protection then I have to create CA LLC for each property and pay the $800, is there any way to avoid in that case? Thanks Clint
Use a Wyoming Statutory Trust to avoid the $800
cant you just dispute the fictitious debt proceeding?
Yes
i do not have a company. so why is california franchise tax board harrassing me?
$$$$$ - squeeze every last dollar.
@@ClintCoons, True that. True that.
You’d still need an additional llc to collect the rent tho non?
no you could have it paid to the trust.
Can you use an Wyoming llc in any state?
Clint can correct me if I am wrong but if you register a WY LLC in another state as a foreign LLC, you could loose the charging-order protection in that other state … I think. You would want to create a child LLC owned by the WY one, which Clint describes … I think.
That is correct. A WY LLC can be used in any state but if you FF the entity it loses the WY benefits.
@@ClintCoons thank u
Could I have to pay FTB if I am foreign and i created my LLC on california?
Yes
ffs, seriously hate California and their Tax, we had to move here a few months ago to be near family. We setup the LLC for a property in Washington state while we lived in WA. Now we moved to Cali, we will need to pay that franchise Tax? If we setup the Wyoming LLC and Trust, will we be liable for FT for the time in between becoming cali residents and setting this up?
Possibly - depends on the timing. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Forgot to cancell 14th month must I pay 800?
Most likely
does this affect CA state taxes?
It does not.
We need to avoid the Franchise Tax, California Charges. Is not worth it.
Use a Wyoming Statutory Trust.