Single Member LLC Asset Protection Myths (Charging Order Protection FACTS)

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When would you use, or should you use, a multi-member LLC? Is it best to create your LLC in the state you live in and if so does are you covered with charging order of protection?
What you need to know is covered in depth in this short video.
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.

[@ClintCoons]

Would you like to learn more about this topic and talk to someone? Schedule a free consultation here: aba.link/cev

[@georgefenrich4119]

I live in NV. Can I still get an LLC in WY AND then one in NV, or is NV all I need?

[@ViralSportsMedia]

Yes I live in Washington I have the same question

[@ClintCoons]

@@ViralSportsMedia If you already have a NV LLC you would not need a WY LLC but you could move your NV to WY to save on annual renewal fees.

[@ViralSportsMedia]

Washington state

[@ClintCoons]

@@ViralSportsMedia Yes you can have a WY LLC

[@MidwestBrotha]

I just wanna say.....Dude you are a BEAST, Thank you for this jewel you just dropped!!!!

[@sandrapaim4107]

I just needed this information so badly!!! Thank you!!!!!!!!!!!!

[@csmithvenice17]

Great content and presentation! You rock!! I used to be a real estate attorney before I retired. Fabulous presentation!

[@ClintCoons]

Wow, thank you!

[@jamesvelvet3612]

Pure gold. TY for posting this up! The flow chart reminded me of a simple bus network (IT guy here). The security of clustering the individual LLCs into an entity that was difficult to get open is impressive. Thoughts on wrapping everything up in a Cook Island Trust ? Quiz time: The countries where safe deposit boxes are the safest are....

[@eddingtonrental8861]

This was extremely helpful. it is so hard getting good information on when it is appropriate to have a holding or parent company in Delaware or Wyoming and when it is not. So many freaking videos out there make it seems it is not necessary but don't tell you the conditions. its confusing!!! It appears that in GA there can be a charging order against your LLC distributions, but from what i've read so far, that is as far as it goes. They cannot foreclose. Thx very much!

[@ClintCoons]

You are welcome.

[@MarcusLeepapi]

Thank you so much.....

[@xmenorigins748]

Love your videos!

[@ClintCoons]

Thank you!

[@MattJesuele]

Smashed the like button as soon as the creditor got horns. Thanks for the info!

[@ClintCoons]

Much appreciated.

[@lvteachme973]

I'm going to hire Clint! I want him on my team.

[@alejandrorojerogonzalez193]

thanks so much for great videos question so I can have 10 rental properties in kansas and each of them on a single kansas llc then to have a wyoming llc holding all the 10 properties .will this offered charging orders protection against sue ? or do I have to put each house on 1 llc I'm kansas and also 1 llc on wyoming ?

[@sherrys.2259]

OMG thank you!

[@ClintCoons]

You are welcome!

[@Zakariah1971]

Excellent info

[@ClintCoons]

Glad you think so!

[@richardmcgough582]

Thank you!

[@ClintCoons]

You bet.

[@consumerdebtchitchat]

This is why an LLC should be backed up by business liability insurance. As much as we hate to pay it. I'm a teacher and your way of explaining things is outstanding. I did not know this. I live in florida. I have an LLC and I also have business insurance liability. I'm not an expert at these things and I want my bases covered😂

[@jahdagod5563]

Thank you.

[@ClintCoons]

You're welcome!

[@JamesJohnson46891]

Thanks Clint - great info. If I have an out-of-state single-member LLC (online video creation business) and I place that under a Wyoming Holding LLC, will I get charging order protection? Another lawyer online said ""The WY LLC strategy does not work for an active business. It doesn't matter if your business is virtual, you are doing most of the work from NC. That means you could be sued in NC regardless of where you set up the LLC. The WY LLC strategy is not applicable here. There is no ambiguity here. Anyone saying to use a WY LLC anywhere in your structure for an active business when you live in NC is wrong." Is she right? How can I be sure? Thanks!

[@melhoresprodutos8899]

Good video Clint, but in general is better have the Partnership because do you have the More One Corporate Veil and is minus auditable by IRS,OK? One question about the Private: is posible open the LLC in the NM and after use the infos of NM and open the Llc in Florida or other State for the privacity?

[@ClintCoons]

Yes that works but NM does not have strong charging order protections.

[@olawaleokusanya1726]

@real estate protection, can the WY holding company by set up to be a Corp rather than LLC? What are the pros n cons?

[@ClintCoons]

Yes but you will lose the charging order protection of the LLC and the corporation should be treated as an S for tax purposes​ to avoid double taxation

[@richardrivera7317]

Excellent explanation! If I have a few homes (owned out right) in a Texas LLC and open a Wyoming LLC, can I transfer the properties to the Wyoming LLC?

[@ClintCoons]

Richard - Use this link to set up a free strategy session aba.link/30minSession

[@liltarus4794]

Great info!! Question Does putting your interest in a trust or living trust during planning protect it at all in states that allow foreclosure? Gray area in Texas for single member.

[@ClintCoons]

It does not

[@faith3145]

@@ClintCoons same question here in New Jersey?

[@ClintCoons]

@@faith3145 A living trust does not offer any protection. The LLC provides the asset protection and the protection is based on where the entity is filed and where it conducts business.

[@faith3145]

@@ClintCoons thank you so kindly. Can you tell me, Jersey has charging order so to protect my assets can I open up an llc in Delaware and still wholesale real estate in NJ without any liability? Thank you💜

[@ClintCoons]

@@faith3145 Remember your LLC can be sued for breach of contract etc. The charing order protection applies to judgements entered abasing you individually. Its purpose is to keep your LLC ownership protected from your personal creditors.

[@thomasforbestv5388]

Excellent

[@ClintCoons]

Thanks

[@arnaldogonzalez1]

thank you

[@ClintCoons]

You're welcome

[@assetstopurchase8432]

I need multiple offshore LLCs within multiple offshore Trusts. Nothing else will protect my assets against a charging order.

[@yammbagg4866]

Why do you think KZbin cares?

[@vanitahall2459]

If my revocable living trust owns a single member wy llc and the wy llc owns the c and s corps in fl that own real estate (they file their own tax returns) how does the wy single member llc file taxes?

[@ClintCoons]

It does not file a return because it is setup as a disregarded entity.

[@WEJIII]

why not Delaware instead of WY, I was told DE also does not allow foreclosure on a charging order protection

[@ClintCoons]

DE is great but more expensive

[@ffilice1]

Ohio changed the statue to provide for charging order protection and no yearly fee, what are the drawbacks if any vs. WY LLC? If I do not care about anonymity, would Ohio Holding LLC be fine?

[@ClintCoons]

Possibly. My concern with the Ohio statute is it leaves out any mention of single-member LLCs. We can assume the law applies to single-member LLCs, but this was the exact issue in, E.g., Olmstead v. FTC, 44 So. 3d 76 (Fla. 2010), where the court found the charging order did not apply despite the wording of the statute. I think it should and will be applied to all forms of LLCs, but this is an open question.

[@wanxiangchen2114]

I have a question. If someone sued one of my properties (for example the one in the Florida LLC) will they be suing the Florida LLC or the Wyoming LLC holding company? If they sue the Wyoming LLC, doesn’t that mean I won’t be able to take distributions from my other real estate LLCs as well since all of them are owned by the Wyoming LLC?

[@deusvult6920]

LLCs are individual entities. Just like every person is an individual entity. Unless they can pierce the veil between your 2 LLCs it's no different than if you owned the FL LLC directly. This is the point of the LLC, to protect you from lawsuits against your business. The Wyoming LLC protects your business from lawsuits against you personally (i.e. car accident judgments). You just have to make sure you're treating each entity as its own entity.

[@LeadsForLocals]

Great video. Regarding Florida, even though their Supreme Court made that crazy decision, from what I understand, Florida Statute 620.1703 states that a creditor's exclusive remedy is the charging order for multi-member LLC's. Am I reading that correctly?

[@ClintCoons]

Yes that is correct.

[@headlibrarian1996]

The attorneys who rewrote Florida’s LLC statute must work for the plaintiff’s bar, because they unfortunately permanently enshrined that decision in Florida law by basically copying the Revised Uniform LLC Act. I don’t know what the lawyers in Cheyenne are drinking but we need more of it in Florida.

[@alexanderberry7320]

Hi Clint, if an indidual is subject to a personal guarantee on a commerical lease, and subsequently creates and transfers assets into a structure similar to above, does the structure typically present enough of an impediment to encourage the landlord to settle (assuming creation of structures / transfer of assets occurs prior to any default / judgement)?

[@ClintCoons]

It could if the landlord looks at your assets and cant find anything in your name then you look like a broke defendant.

[@eddingtonrental8861]

@@ClintCoons It would seem that you'd need multiple Wyoming LLCs as a holding company right? ABCD, LLC is a Wyoming LLC. A lawyer can still find all the LLCs that ABCD, LLC owns. (This assumes the suit happens within one of your LLCs owned by ABCD, LLC and they pierce the veil.)

[@maxlarocca78]

Can a judge order me to take a distribution in WY to execute the charging order ?

[@ClintCoons]

No. WY law precludes this remedy.

[@deannak1841]

Just curious, so if i set up in Wyoming- then am i not having to set up as a foreign entity- I'm not physically doing business in the state per say, also am i not then responsible to pay taxes in both states?

[@ClintCoons]

Correct - so long as your LLC does not conduct business in another state it will not need to register. Also, you will pay state income tax in the state where you reside.

[@dman10000000]

Thanks for the video...legally could you place another separate LLC as the other member of a single member LLC?...or this other member have to be an individual person?...by the way I'm in SC

[@ClintCoons]

Yes you can!

[@foreverwealth6845]

Hi Clint, if you set it up that way then the CA llc is actually a single member llc (its member is the WY llc). Can a CA judge foreclose on the CA llc interest to pay off creditors?

[@ClintCoons]

CA can not foreclose on the CA LLC because you do not own it - your WY LLC owns the CA LLC. A personal judgment would be levied against you. You do not own an interest in a CA LLC.

[@ratapaga5963]

How about in Massachusetts

[@hb-pb8tv]

I am inNY and have sole proprietorship to conduct deliveries. I am ready to close the sole proprietorship and open an LLC. In this LLC I plan on buying more vans and hiring drivers. I would like to know if NY LLC has charging order protection status ... if NY will afford me the inside and outside protections? How would I get the best protection for my situation?

[@ClintCoons]

There is a lot to unpack in what you are doing such as how will the business be taxed, the value of the equipment, will you have future partners, how many employees, etc. I suggest you schedule a FREE 30-minute consultation, you can request one here - aba.link/30minSession. NY does offer charging order protections but the statute does not state the charging order is the exclusive remedy. This could be a weak spot however, with your business, using an out-of-state holding entity may pose challenges with lenders and obtaining licensing. This must be factored into your overall business setup.

[@luimoran4911]

Thank you marty byrde

[@ClintCoons]

You are very welcome

[@muchmore99]

3 months ago I paid cash & purchased my home (2 bedroom condo) and it's my primary residence. It was purchased by my single member LLC. No mortgage on it but I want to put a HELOC on it and having trouble because I cant find a bank that will do a HELOC for a primary residence in the name of my LLC. All the banks tell me to transfer ownership into my name. I don't want to do that. Does anyone know of any banks that will provide a HELOC on a primary residence in the name of a single member LLC at the same interest rate that banks lend on owner occupied primary residences? The bank would have a first lien position.

[@gavnonadoroge3092]

@muchmore99 did you find a bank that does that?

[@stevenburton7922]

LLC. What is more secure, the Wyoming holding LLC or going off shore and creating an LLC there. Do these provide protection from lawsuits and divorce etc?

[@ClintCoons]

Offshore could offer more protection but we do not advise or operate in that space.

[@alliesteamc3546]

How about commercial property -what is the difference between holding LLC in Wyoming vs Delaware LLC ?

[@ClintCoons]

I prefer to use DE because lenders appear to be more comfortable with DE on larger deals. (10MM and above)

[@brianramrup5527]

Hi I live in NY and just getting started with real estate investing. Is it worthwhile for me to open an WY LLC now with no properties ready to purchase, or should I open just NY LLC for time being, purchase/close on my property in NY, Put the property into the NY LLCs name, then open the Wyoming llc and transfer ownership of the NY LLC to the WY LLC? Is any of that possible or logical.? Trying to strategize and understand the best order to go about this without being wasteful with fees unnecessarily is a bit difficult to get a clear answer on.

[@ClintCoons]

First off it depends on how you plan to purchase your property. Will you be financing? If so are you looking at residential or commercial (5 units or greater)? If you are planning to purchase a single-family rental property with financing then I suggest you hold off until you acquire the property. You won't be able to close in the name of the LLC so there isn't any rush. You may find a property in a different state and then your NY LLC you are considering creating will go unused. Consider setting up a 30-minute consultation with my firm to flesh out a plan - you can request one here - aba.link/30minSession

[@billytheweasel]

WA state is a community property state and it looks like a man & wife filing taxes jointly can have a 2 member LLC and have a "Disregarded" tax provision. RCW New Rule 2016 affirms Charging Order is sole remedy.

[@ClintCoons]

Correct

[@martialshots2194]

In Florida, are single shareholder corporations subject to similar risks to charging orders?

[@ClintCoons]

Charging orders do not apply to corporations - you can have your stock seized by a creditor. Charing orders do not protect single member LLCs in FL

[@hasaanen2194]

Is Tennessee strong for the LLC generally accepted and known protection?

[@ClintCoons]

Sucks - sorry :(

[@SageKwan]

isn't the protection of an LLC determined by where you live? for example if I live in TX and have a WY LLC, wouldn't they just follow TX law in determining how to treat the LLC?

[@ClintCoons]

Depends on where the LLC is conducting business. If it is a WY LLC conducting business in TX - yes TX law would apply. however if the LLC does not have any connection to TX then WY law would apply.

[@TheLunchboxCakery]

So even when your operating LLC is in a weak state, and doing business in that state, if the single member is a WY LLC, then WY law trumps?@@ClintCoons

[@LAKitchen]

Doesn't CA requite that CA laws apply on all entities, even if LLC set up in WY? If property in CA, then foreclosure still happen-even if WY LLC?

[@ClintCoons]

If the WY LLC is conducting business in CA then yes CA law definitely applies.

[@TheGolfster3]

Are you limited to the amount you can charge as a management fee? What happens tax-year end when there still is money left in llc account?

[@ClintCoons]

No you are not but it should be reasonable i.e., what would a 3rd party professional company charge for similar services.

[@unknowndriver6652]

Does the wy llc make sense for trucking companies since we run business all over the US? I dont want a medical bill taking my income or assets

[@ClintCoons]

No. But it would make sense to place your assets in different entities so if something happens with a haul your cash and investments are not at risk.

[@unknowndriver6652]

@@ClintCoons but if i open other entities still they are under my name the collectors will see it and go after my assets right?

[@ClintCoons]

@@unknowndriver6652 This is where you would use anonymity to keep your other entities private.

[@JasonY02]

So if you buy an rent house/complexes an apartments you can open a LLC ??

[@ClintCoons]

Yes

[@barbershop7277]

If I have a single member llc in FL can debt collectors from personal debt come after the llc?? And if I use my home address as a business address can I be sued for my house??

[@ClintCoons]

Yes in Florida, single member LLCs do not have charging order protections.

[@Darrell_lewis_massage_realtor]

Tx resident. Does Texas have charging order for single member LLC’s? Some say there has to be another member, others don’t.

[@ClintCoons]

Check out this video: kzbin.info/www/bejne/oYmtmJuDirSXZq8

[@ochicoloto3524]

Nice content. I have a car rental on turo under an LLC. My vehicle titles have joint ownership ( my LLC name and my name but i use business insurance) am I protected?

[@ClintCoons]

Are you listed as the legal or registered owner?

[@ochicoloto3524]

@@ClintCoons I am unable to make that distinction from the title. It is a single member LLC. If I want to rent out one of my other cars, How do I legally add the LLC name to the title to protect me. I don't want to transfer the title to LLC because it will trigger tax, which I paid last month while registering in my name.

[@TobyMathis]

@@ochicoloto3524 You would need to make the LLC the registered owner.

[@shauna1306]

I have a consulting business in California. My primary goal is to build business credit. Should I first form a WY LLC holding company that then forms a CA LLC company for my consulting service? Or will this be too much for a consulting business?

[@ClintCoons]

Too much. Just go with California. Anonymity does not work with building credit. See my video on building credit for more information.

[@shauna1306]

@@ClintCoons wow! I'll go check it out. Thanks!

[@dman10000000]

Having another LLC, that I own, be added as an owner to avoid the single member issue and to receive some charging order protection...or should I just add another family member or add my existing living trust?...by the way I'm in South Carolina and they are very weak...

[@ClintCoons]

Add another family member with .05% and you are done.

[@dman10000000]

@@ClintCoons , Great ...thanks...always good information, always a huge fan...

[@user-bt6jn6wg2b]

Clint, what are the Kentucky laws on LLC? I hope they are not like California and South Carolina, I will start with Wyoming LLC like you talk about. See you soon, Lee Gray from Kentucky

[@ClintCoons]

Thanks for the support. I recommend setting up a free consultation with my team so we can provide the best answer. aba.link/cev

[@dbdb4962]

I live in NV. Does a NV holding LLC provide the same protections as WY?

[@ClintCoons]

Yes they both offer charging order protections but the anonymity is different because in NV you must use a nominee manager.

[@alpinewhite]

@@ClintCoons For states that do not require the use of a nominee manager, what is the alternative?

[@headfirst6227]

Just need to figure out how to pressure the ‘creditor’ to lift the charging order and the strategy will be complete. Probably unique to each situation.

[@Kingdia97]

Hahahah broo it's called phantom income. Look it up. Your welcome.

[@headfirst6227]

@@Kingdia97 Fact is, I have heard of it. Thanks for reminding me tho. Was watching a video about successful settlements the other day and I thought they mentioned collecting tax free. I may have misheard the speaker. Just covering my ass-ets.

[@Kingdia97]

@@headfirst6227 never settle bud. Tell the other side you don't mind losing a case or even fighting for that matter. What's the point of winning a judgement you can't collect? These contingency fee attorneys just use scare tactics to pressure a settlement.

[@headfirst6227]

@@Kingdia97 Exactly. I don't plan on ever paying out to any courtroom crooks so I'm collecting as many strategies as I can to dodge them. WY LLC holding a HELOC on my home, spawning other WY LLCs for my businesses, using Anderson for anonymity, etc. Got to learn from multiple sources since some are better at one thing than the other.

[@Kingdia97]

@@headfirst6227 Yee bud, also counter sue just to waste their time.

[@Dee7771000]

YAY Wyoming

[@danielcleary1072]

Don’t most lenders require you sign a personal guarantee? How would an LLC protect you in this case. I guess you could refuse to sign, but then you don’t get the money or find a non-recourse loan if you can.

[@ClintCoons]

Correct this does not protect you against the lender foreclosing on the property owned by the LLC and seeking a deficiency judgement. Keep in mind, using protection will protect your other assets from a lender judgement I.e., the only asset at risk will be the property secured by the home loan.

[@danielcleary1072]

Would love to chat some time. Don’t have too many assets now, but one day I will!

[@russcali4138]

Would a WY LLC protect me from losing funds to to Medicaid for nursing home / medical costs and other lawsuits

[@ClintCoons]

It would definitely make it more difficult for someone to collect.

[@deannak1841]

Also wouldn't i also need to pay for registered agent?

[@ClintCoons]

Yes you do.

[@miguelmagallmm]

If you form a Wyoming LL as a holding entity and a LLC in Florida,,,, do i still have o pay taxes in Wyoming and Florida?

[@ClintCoons]

Neither state has an income tax.

[@miguelmagallmm]

Real Estate Asset Protection what do you mean? Don’t you have to pay an annual fee to keep the Llc active in Wyoming and Florida? And also pay taxes on the generating income from the Florida LLC? Could you explain? Thanks

[@ClintCoons]

​@@miguelmagallmm Yes you must pay an annual state filing fee to keep the entities active in both states. LLCs in Florida and Wyoming pay no tax.

[@utube9000]

Sounds good Clint but...the judge could say "Well, you don't REALLY do business in Wyoming, these houses are in California" (or Nebraska, Massachusetts, etc) and then just override your Wyoming LLC. Could THAT happen?

[@ClintCoons]

In what context I.e., who/what is being sued?

[@lil_bit]

I’m wondering if we have to create a Trust before coming to you for assistance?

[@ClintCoons]

You do not.

[@faith3145]

Can I live & do real estate and have a llc in Delaware to protect my personal assets?

[@ClintCoons]

Yes.

[@faith3145]

@@ClintCoons Hi i need to refrase my question. If I live in New jersey and wholesale in New jersey both commercial and residential can I open an llc in Delaware to protect my assets and if I do, do I also have to open one in New jersey? But here's also another question if I open a llc in Delaware to cover my assets & New Jersey be my 2nd for to members I don't have any one but me how does that work because you need a member in NJ so the llc can go to Delaware where you are manager so no one can see the owner? You know I stood replaying for one hour trying to get this in your video & that is the hardest part for me to grasp I need help with that and I would love to get your premium but I'm brand new in this & like to start my business and don't have that kind of funds.. maybe in the future because you are really good & I really selective after doing my homework 🤗

[@ClintCoons]

@@faith3145 This is getting a little complicated for an answer on the channel. The activity you are considering it typically run through an entity treated as a a corporation for federal tax purposes. This entity would be set up in NJ and may not have a DE component. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@TheWolfSaidPoofy]

Are charging orders the same as piercing the corporate veil? What protections are there against that?

[@ClintCoons]

No they are not. Charging orders specifically deal with what a personal creditor of a member in an LLC can acquire. Piercing the corporate veil deals with an attack against the entity then seeking to disregard the entity form to sue the owners.

[@daveforgot127]

Why not sign up for a Nevis LLC?

[@ClintCoons]

You could but just be prepared to report your ownership to the feds every year.

[@ofirmichael]

i Do see a problem here. obviously the WY LLC is protected. BUT the FL, SC and CA LLCs are now a single member LLC (held by WY LLC). now these LLCs are NOT covered by charging order protection per local state laws. how do you get around this?

[@ClintCoons]

You do not own the upper LLCs. The charging order only attaches to any LLC that you personally own. The WY LLC stands as a wall between you and these other entities.

[@GoaWay...]

@@ClintCoons how does someone go about doing that especially if they do not live in that state?

[@ClintCoons]

@@GoaWay... You would need to work with a firm that has a physical presence in those states so you can have a local business address.

[@islandthunder21]

Question. Ca resident. So if I have pre existing debt such as child support or school loans, can I create an llc in WY and then an llc in ca owned by the WY llc, could they take my assets/business in CA? Or how would that work?

[@ClintCoons]

The WY LLC will not help you avoid these obligations. Child support obligations will pierce the entity and allow this type of creditor access to the assets.

[@islandthunder21]

@Clint Coons Esq. | Real Estate Asset Protection what would be a better way to structure my llc with this in mind? The other option I see is to open up the llc with one of my colleagues as the owner. I'd like to avoid that if possible. Not sure what would be the best way to structure it.

[@ClintCoons]

@@islandthunder21 Those types of strategies will most likely cause issues down the road for you and your friend if discovered. I am not saying you shouldn;t set up a WY LLC for yourself just you can not do it to avoid your child support obligations. That would not be respected by a court.

[@islandthunder21]

@Clint Coons Esq. | Real Estate Asset Protection got it. But not trying to avoid cs, just trying to understand that if I open up a llc to pay myself and make payments, can they deny my application? How can I start my business with existing debts without them seizing my company?

[@ClintCoons]

@@islandthunder21 Who is going to deny your application? You can open up an LLC and the state will not ask about your debts.

[@MrLove-vi4dj]

How do I transfer my LLCs into a Wyoming LLC?

[@ClintCoons]

You transfer them through an assignment of interest.

[@AA-ct7cb]

So it Durant protect in California?

[@ClintCoons]

Correct.

[@kaycali4912]

Great video! Very straightforward. I’m in California, if I create my LLC with Wyoming, will that cause issues with the IRS?

[@ClintCoons]

Not at all

[@kaycali4912]

@@ClintCoons I just filed my LLC, would it be suspicious to amend and use Wyoming?

[@kaycali4912]

@@ClintCoons I did create it before I found out about Wyoming. Should amend or wait until renewal date?

[@ClintCoons]

@@kaycali4912 I dont think it matters one way or the other

[@kaycali4912]

@@ClintCoons someone from Mollaei Law said if I have a Wyoming LLC and I live in California, I need to register as a foreign LLC in California ( and potentially hold and maintain 2 LLCs and pay 2 state filing fees and 2 annual report fees). 😬 is that accurate?

[@terrellrichardson1448]

You name several different states what about New York state for single member LLC

[@ClintCoons]

NY law does not distinguish between single or multi

[@lancestudworthy]

Can you make a comment or video about this statement. I did not open up this Wyoming LLC for the following reason. There is a serious problem with setting up a wyoming LLC for asset protection. If you live in a state like Illinois or California and that is your residence then the state where you are domiciled is what takes precedent and that is the law that has jurisdiction over you from outside creditors if the event happened in your domiciled state. If you own assets like this with a wyoming LLC as holding LLC and you get sued in Illinois then that law will prevail and Illinois courts will order the foreclosure of your LLC. Wymoning has adpteded the Uniform Enforcement of Foreign Judgements Act. So the Wymoning LLC only works if you are a resident of Wyoming. The State of Wyoming generally adopts the Uniform Enforcement of Foreign Judgements Act . (WS 1-17-701 to 1-17-707.) Any , decree or order of a court of the United States or of any other court is entitled to full faith and credit in the State of Wyoming .

[@ClintCoons]

Amir you are correct about the statute but incorrect in your interpretation. Recognizing and giving effect to a judgment is different than providing a remedy. The charging order is a judicial remedy. Yes the WY court will recognize the foreign judgement but the afforded remedies for the judgement creditor will be up to the WY court.

[@kennethhathaway4001]

What a bout Texas

[@ClintCoons]

Texas is strong but there have been a few cases that deviated from standard protections.

[@Darrell_lewis_massage_realtor]

@@ClintCoonsthank you for this answer! I was questioning whether to have a wy-Tx arrangement or a Texas holding company. This answered it?

[@terrellrichardson1448]

You name so many other states what about New York State

[@timothyyoung980]

Wait a minute..... You can take a personal loan out from a business you own?

[@ClintCoons]

Yes you can.

[@vando7999]

What if I had my asset (house) under living trust? Do I need to change it into LLC to protection?

[@ClintCoons]

If you are referring to your personal residence the answer is usually no