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Wow Clint, you gave such useful and understandable,l info on this. I have heard of people loosing everything and its obvious to me now how that can occur. This takes planning. I think you and your company really understands how to navigate through all of the laws regarding asset protection. I do not hear anyone getting into the details as you. Thank you again!
Thank you for the information. Fantastic information. The only thing I didn't get is why not Wyoming LLC own the assets directly instead f indirectly through other llc's as you showed.
If something goes wrong with one of your investments then the WY LLC is at risk and all of its assets. You use the separate LLCs to segregate and minimize your liability exposure.
Your hypotheticals are enriched with the game. Your omnidirectional coverage is definately a value add. Subscribing, Liking and commenting. Thanks Bro.
@@303Estates If you would like a FREE 30-minute consultation to discuss your 5 rentals and an asset protection plan, you can request one here - aba.link/30minSession
Great vide Clint. What is the process exactly of moving your LLCs into your limited liability Wyoming company? Do I have to deed them over? Do I do an assignment letter? Do I do both? Do I have to file the above with Wyoming Secretary of State? That would be a great video for the future. I can’t seem to find this information ANYWHERE! Thanks again for all your hard work.
Look at your operating agreement and find out the process for assigning your membership interest to another party. You want to make sure the transfer is compliant with your operating agreement.
Apples and oranges. I prefer to use Dubai as it is near impossible to get through. This type of planning is next level and is something to be considered if you are in a high risk profession or have significant assets.
Hi Clint im confused. In your video 8 mistake made in an operations agreement you said you should have no charging order language, but now you are saying I should have the charging order language to be the exclusive remedy . Please explain.
You mentioned that you have a great language in your Operating Agreement that you've refined over the years to make sure that your client assets are protected from personal creditors. Is there a template of that Operating Agreement that's available for purchase?
Hello Clint, learning so much from you as usual. Thank you very much. I heard Texas dose not offer charging order protection for single managing member? If so does the operating agreement indicating that charging order protection is the sole resolution and foreclosure and receiver etc are not possible? Or the state has to support the statue and operating agreement alone cannot offer the protection on its own? If it needs to be the state statue protection then is the only solution to have the member to be LLC in Wyoming, Delaware, Alaska etc?
@@ClintCoons Clint, I read this on couple of lawyer websites that only 5 states (Alaska, Wyoming, Delaware, South Dakota and Nevada) offer charging order protection for SMLLC and Texas requires at least 2 members. (I tried to paste the links, but looks like my reply got deleted :)). But it would be great if you have a reference to the Texas statue that indicates charging order protections for SMLLC. Much appreciated
@@sachinanantha2715 Here is the statute: Business Organizations Code Section 101.112. Here is a TX case on the matter: casetext.com/case/in-re-prodigy-servs
If you are not in Wyoming but have a Wyoming LLC as your holding company for Arizona rental property and reside full time in Caifornia do the protections extend to out of the state of Wyoming?
Hi Clint, I watch all of your videos, very informative thank you. Would I be able to buy a operating agreement that you’ve perfected over the years that you mentioned in this video from your firm for my claims adjusting business LLC
Hi Clint- you are a GEM. Canadian investor going into Ohio shortly. I have to set up a CCORP IN WYOMING with LLC in Ohio… would CCORP own the house or LLC? How would we use you guys to structure LIABILITY if Ohio home LLC is sued?
For Canadians we use a limited partnership with an LLC as the general partner. You do not want to use LLCs because the CRA will hit you with a double tax.
Good info! I am wondering: if there is a charging order against you personally, but you are employing this strategy/not taking distributions from LLC/creditor is just sitting on this uncollected judgment... what happens to that award or your LLC interests in the event you die with judgment still unpaid? Does your executor/trustee have to pay off judgment as one of your "just debts" or does judgment still attach to LLC or ...? Thanks for videos, I'm learning a lot.
@@ClintCoons So family would just need to be alerted to "stick with the plan" (no distributions) until 10 years after judgment. Got it. Thanks. (Not planning on gettin sued and not planning on dying real soon, but stuff happens!)
Thank you for all the content you make for us. Another attorney on TH-cam makes the point that should they happen to connect you with that WY LLC, it more or less hands over all the other LLCs owned by it as a nicely wrapped package. What are your thoughts on this? I did create a WY LLC years ago after watching some of your videos, so thank you for all of your information.
Great Content. In the Platinum membership program you are offering, does that include assisting with the operating agreement language you talked here including a proper setup strategy of the multiple LLC's I may have in different states?
Another great educational session. Can you please provide a list io states that provide Charging order protection for single member LLCs? I could find just 5 Delaware, Wyoming, South Dakota, Alaska and Nevada What kind of protection does Virginia offer? If I and my spouse are members, do we get the same protection ?
VA offers great charging order protections. I think you have the states that specifically mention single member LLCs but that does not mean VA would not provide the same protection to a SMLLC as it would to a multi member LLC.
Loan yourself money ok but how are you going to repay the loan if there's a charging order in the first place would the courts ask how did you repay the loan where did the money come from?
Set it up as interest only and repay the interest per the schedule. If you do not then it would be considered a disguised distribution. I also assume the charged member would have other sources of income e.g., w-2, to help pay the interest. Further the loan should not be used to meet your living expenses otherwise this could give a creditor a possible in.
Ok the loan would be for business only use so the creditor would not have a possible in , but wouldn't the w-2 earnings be garnished from the creditor also
I have a question regarding a Wyoming based holding company. Once i have that business set up in Wyoming do I then make all of the subsidiaries member managed or manager managed? My gut tells me to do manager managed even though I own the holding company and the holding company is the sole member. Do I appoint myself as a manager of that company on behalf of the holding company and leave the subsidiary company manager managed?
Or should I do member managed, but have a clause that allows me to appoint an officer on the behalf of the holding company within the operating agreement?
If I set up a land trust for a property with me and partner as beneficiaries but assigning our interests to an LLC where we are the owner. Will creditor be able to go after the property in court because the LLC actually own the property and we are the owner of the LLC? Is this why you suggest assigning beneficiary interest to a Wyoming LLC in your other videos?
If the creditor is an injured tenant or someone the LLC engaged for services then the creditor will bring a claim agains the LLC. If it is a personal creditor then it is against you and not the LLC.
Hi Clint, if I have a C Corp/Stock in Delaware or Wyoming, can a creditor take the stock ? Or does the charging order protection allow me to keep the shares I have ?
Does not apply to stock. Put your shares in an LLC for the protection - (unless it is an S-Corporation then you must set up your LLC as a disregarded entity)
Dear Clint If my CA llc is owned by a WY llc then it’s still a single member llc then can creditors or the court can still dismantle it and take away the assets? Or should it’s owned by 2 WY llcs instead?
I was looking earlier at one of your videos and you said no charging order language should be in your llc now your saying it must state a charging order as a sole remedy as charging orders are the sole remedy in Texas where I'm at. Confused 😕
I get it. You need the language in your LLC operating agreement and your LLC must be formed in a state that recognizes the charging order as a the sole remedy.
Since operating agreements aren't recorded, couldn't a debtor just write their operating agreement after they've been sued to include the charging order "sole remedy" language?
@@ClintCoons Thanks! Follow up question: If I had all my large assets in a Nevada Asset Protection Trust, I financed an investment property in my personal name and someone was injured on the property. Would my trust assets be protected from a charge order protection against me personally?
@@Steven-vi5nb The person injured on the property will bring action against the property owner. If the trust owns the property then the trust will be the defendant.
@@ClintCoons First of all, thanks so much for your expertise, the only reason I can have a semi-adult conversation about all of this is because of your videos! But, I think our wires are a little crossed. I'm wondering if my assets were in the asset protection trust, BUT the property in question was not in the trust (just in my personal name), would my trust assets be protected from any personal liability resulting from the property held in my personal name, not held in the trust. The context to my question is: If I did 90% financing on a $200k property, my liability exposure is only the equity ($20k), so not much. I'd get optimal loan options because we'd close in my personal name, not an LLC. But if someone got hurt on my "personal" property and sued, they could go after my $20k equity, which I'm okay with. But would my assets held in the Nevada Asset Protection Trust be protected?
@@Steven-vi5nb Yes, I now understand your question. A claim made against you should not be enforceable against the assets held inside of the NAPT (this assumes it is properly set up). Keep in mind with NAPTS they are very technical and must comply with the statute to pass muster.
@ClintCoons I have a commercial property. I want to pay you guys to set it up this way for me. Wyoming LLC Operating agreement And I have a business LLC I’d like to move into the holding company as well. How do I make an appointment to talk to you?
Learn about Real Estate & Asset Protection at our next all-day free Livestream. Our attorneys and specialists will answer ALL questions: 👉 Save Your Seat: aba.link/z7z
Wow Clint, you gave such useful and understandable,l info on this. I have heard of people loosing everything and its obvious to me now how that can occur. This takes planning. I think you and your company really understands how to navigate through all of the laws regarding asset protection. I do not hear anyone getting into the details as you.
Thank you again!
Much appreciated.
Thank you for the information. Fantastic information. The only thing I didn't get is why not Wyoming LLC own the assets directly instead f indirectly through other llc's as you showed.
If something goes wrong with one of your investments then the WY LLC is at risk and all of its assets. You use the separate LLCs to segregate and minimize your liability exposure.
Also the WY LLC needs to be registered in your state you do business in. That will probably put your name on public record.
@@brad265you can set it up to be anonymous
This is fantastic. I absolutely love you people!
Your hypotheticals are enriched with the game. Your omnidirectional coverage is definately a value add. Subscribing, Liking and commenting. Thanks Bro.
SCOTT JONES
Thanks for watching.
Great information here. Thank you!
Glad it was helpful!
Really great information 👍
Glad it was helpful!
Thank you very much for sharing your valuable expertise!
Would you be listed as a member or manager on the wyoming LLC when you set it up? Or would you have someone else listed for more anonymity?
Gotta say, you are a genius in this stuff, and thankfully, you think outside the box!!
Thanks Svend
@@ClintCoons if I needed your help setting up my 5 rental buildings, and creating a bullit proof liability protect, how do we do that...
@@303Estates If you would like a FREE 30-minute consultation to discuss your 5 rentals and an asset protection plan, you can request one here - aba.link/30minSession
rocket science made clear and understandable,
Great vide Clint.
What is the process exactly of moving your LLCs into your limited liability Wyoming company?
Do I have to deed them over?
Do I do an assignment letter?
Do I do both?
Do I have to file the above with Wyoming Secretary of State?
That would be a great video for the future.
I can’t seem to find this information ANYWHERE!
Thanks again for all your hard work.
Look at your operating agreement and find out the process for assigning your membership interest to another party. You want to make sure the transfer is compliant with your operating agreement.
Clint, what is your opinion of an anonymous LLC via Nevis?
Apples and oranges. I prefer to use Dubai as it is near impossible to get through. This type of planning is next level and is something to be considered if you are in a high risk profession or have significant assets.
Hi Clint
im confused. In your video 8 mistake made in an operations agreement you said you should have no charging order language, but now you are saying I should have the charging order language to be the exclusive remedy .
Please explain.
No I said you need charging order language. It is imperative.
Does Texas still respect charging order for Single member LLC’s? I’m getting mixed info online
Clinton what if the debtor committed fraud using the LLC. Will Wyoming allow foreclosure?
You mentioned that you have a great language in your Operating Agreement that you've refined over the years to make sure that your client assets are protected from personal creditors. Is there a template of that Operating Agreement that's available for purchase?
Gotta pay for it
I'm sure
Hello Clint, learning so much from you as usual. Thank you very much. I heard Texas dose not offer charging order protection for single managing member? If so does the operating agreement indicating that charging order protection is the sole resolution and foreclosure and receiver etc are not possible? Or the state has to support the statue and operating agreement alone cannot offer the protection on its own? If it needs to be the state statue protection then is the only solution to have the member to be LLC in Wyoming, Delaware, Alaska etc?
Texas offers charging order protections for SMLLCs. Where did you hear that?
@@ClintCoons Clint, I read this on couple of lawyer websites that only 5 states (Alaska, Wyoming, Delaware, South Dakota and Nevada) offer charging order protection for SMLLC and Texas requires at least 2 members. (I tried to paste the links, but looks like my reply got deleted :)). But it would be great if you have a reference to the Texas statue that indicates charging order protections for SMLLC. Much appreciated
@@sachinanantha2715 Here is the statute: Business Organizations Code Section 101.112. Here is a TX case on the matter: casetext.com/case/in-re-prodigy-servs
Does the Wyoming LLC need to be a single member for charging order protection? I own Utah real estate with my brother.
Not at all. The charging order protections apply to every WY LLC.
If you are not in Wyoming but have a Wyoming LLC as your holding company for Arizona rental property and reside full time in Caifornia do the protections extend to out of the state of Wyoming?
Yes the protections from LLCs extend to where you live.
Let’s say you are ordered a restitution and you create or already had this structure would that save your assets ?
You must have the structure in place before.
Before the legal fact or before you did wrong, thank you so much I have seen most of your videos and somehow has been for lot help.
amazing. but i wonder if these theory applies for foreigners?
Hi Clint, I watch all of your videos, very informative thank you. Would I be able to buy a operating agreement that you’ve perfected over the years that you mentioned in this video from your firm for my claims adjusting business LLC
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Hi Clint- you are a GEM. Canadian investor going into Ohio shortly. I have to set up a CCORP IN WYOMING with LLC in Ohio… would CCORP own the house or LLC? How would we use you guys to structure LIABILITY if Ohio home LLC is sued?
For Canadians we use a limited partnership with an LLC as the general partner. You do not want to use LLCs because the CRA will hit you with a double tax.
Good info! I am wondering: if there is a charging order against you personally, but you are employing this strategy/not taking distributions from LLC/creditor is just sitting on this uncollected judgment... what happens to that award or your LLC interests in the event you die with judgment still unpaid? Does your executor/trustee have to pay off judgment as one of your "just debts" or does judgment still attach to LLC or ...? Thanks for videos, I'm learning a lot.
The judgement will expire after 10 years. The judgment would not expire because you passed but will after the requisite period of time.
@@ClintCoons So family would just need to be alerted to "stick with the plan" (no distributions) until 10 years after judgment. Got it. Thanks. (Not planning on gettin sued and not planning on dying real soon, but stuff happens!)
Where do you send the operating agreement for LLC?
Your operating agreement is private and is not shared with third parties.
Sir do a video on multi membership llc please for real estate investment groups.
I have added to the list. Thanks.
So informative.
Glad you liked it
Thank you for all the content you make for us.
Another attorney on TH-cam makes the point that should they happen to connect you with that WY LLC, it more or less hands over all the other LLCs owned by it as a nicely wrapped package. What are your thoughts on this?
I did create a WY LLC years ago after watching some of your videos, so thank you for all of your information.
Could you send me a link to the video so I can respond? I would need to see his take on how this would be turned over.
Great Content. In the Platinum membership program you are offering, does that include assisting with the operating agreement language you talked here including a proper setup strategy of the multiple LLC's I may have in different states?
Platinum does not include drafting operating agreements. We provide this service as well.
love this dude
Another great educational session.
Can you please provide a list io states that provide Charging order protection for single member LLCs?
I could find just 5 Delaware, Wyoming, South Dakota, Alaska and Nevada
What kind of protection does Virginia offer?
If I and my spouse are members, do we get the same protection ?
VA offers great charging order protections. I think you have the states that specifically mention single member LLCs but that does not mean VA would not provide the same protection to a SMLLC as it would to a multi member LLC.
@@ClintCoons Thank you
hey, this was an amazing video. a true asset on asset protection.
Much appreciated!
Loan yourself money ok but how are you going to repay the loan if there's a charging order in the first place would the courts ask how did you repay the loan where did the money come from?
Set it up as interest only and repay the interest per the schedule. If you do not then it would be considered a disguised distribution. I also assume the charged member would have other sources of income e.g., w-2, to help pay the interest. Further the loan should not be used to meet your living expenses otherwise this could give a creditor a possible in.
Ok the loan would be for business only use so the creditor would not have a possible in , but wouldn't the w-2 earnings be garnished from the creditor also
I have a question regarding a Wyoming based holding company. Once i have that business set up in Wyoming do I then make all of the subsidiaries member managed or manager managed? My gut tells me to do manager managed even though I own the holding company and the holding company is the sole member. Do I appoint myself as a manager of that company on behalf of the holding company and leave the subsidiary company manager managed?
Anonymity is the ultimate goal here.
Or should I do member managed, but have a clause that allows me to appoint an officer on the behalf of the holding company within the operating agreement?
The sub LLCs are member managed with officer provisions.
@@ClintCoons I appreciate your response. Thank you.
If I set up a land trust for a property with me and partner as beneficiaries but assigning our interests to an LLC where we are the owner. Will creditor be able to go after the property in court because the LLC actually own the property and we are the owner of the LLC? Is this why you suggest assigning beneficiary interest to a Wyoming LLC in your other videos?
If the creditor is an injured tenant or someone the LLC engaged for services then the creditor will bring a claim agains the LLC. If it is a personal creditor then it is against you and not the LLC.
I'm a huge fan..I'm in South Carolina and not sure if charging order protection is the only remedy or not.
It does not. SC allows for the appointment of a receiver and foreclosure.
How important is the Operating Agreement for LLCs?
Very if you are involved in an audit or lawsuit. So long as neither occurs most people will never ask besides possibly a bank or title company.
So I shouldn't bother putting charging order language in my llc operating agreement if my llc was formed in California?
Yes
Hi Clint, if I have a C Corp/Stock in Delaware or Wyoming, can a creditor take the stock ? Or does the charging order protection allow me to keep the shares I have ?
Does not apply to stock. Put your shares in an LLC for the protection - (unless it is an S-Corporation then you must set up your LLC as a disregarded entity)
If I have a LLC in Kansas does a WY LLC have to register with the state of Kansas in order to be a member of that KS LLC?
It does not
Dear Clint
If my CA llc is owned by a WY llc then it’s still a single member llc then can creditors or the court can still dismantle it and take away the assets? Or should it’s owned by 2 WY llcs instead?
A personal creditor can only go after what you own and that is a WY LLC. You do not own the CA LLC.
@@ClintCoons I’m worried if the creditors or court can pierce the corporate veil of the WY llc and take over the CA llc and/or the assets inside it?
Great video!
Thanks!
I was looking earlier at one of your videos and you said no charging order language should be in your llc now your saying it must state a charging order as a sole remedy as charging orders are the sole remedy in Texas where I'm at. Confused 😕
I get it. You need the language in your LLC operating agreement and your LLC must be formed in a state that recognizes the charging order as a the sole remedy.
how can you take out a loan if house/llc has a charging order already on it>
The charging order attaches to the holding LLC not the upper tier property LLCs. You would work with a Non-QM lender to obtain the loan.
Thanks...
How do I get an operating agreement from you guys for my WY LLC?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
You are a freakin beast, taught me so much
Thanks Garth.
Since operating agreements aren't recorded, couldn't a debtor just write their operating agreement after they've been sued to include the charging order "sole remedy" language?
Yes you can restate your operating agreement.
Do any states provide charging order protection for a trust?
They do not. If you want to set up a trust with asset protection, you might consider using a Nevada Asset Protection Trust.
@@ClintCoons Thanks! Follow up question: If I had all my large assets in a Nevada Asset Protection Trust, I financed an investment property in my personal name and someone was injured on the property. Would my trust assets be protected from a charge order protection against me personally?
@@Steven-vi5nb The person injured on the property will bring action against the property owner. If the trust owns the property then the trust will be the defendant.
@@ClintCoons First of all, thanks so much for your expertise, the only reason I can have a semi-adult conversation about all of this is because of your videos!
But, I think our wires are a little crossed. I'm wondering if my assets were in the asset protection trust, BUT the property in question was not in the trust (just in my personal name), would my trust assets be protected from any personal liability resulting from the property held in my personal name, not held in the trust.
The context to my question is: If I did 90% financing on a $200k property, my liability exposure is only the equity ($20k), so not much. I'd get optimal loan options because we'd close in my personal name, not an LLC. But if someone got hurt on my "personal" property and sued, they could go after my $20k equity, which I'm okay with. But would my assets held in the Nevada Asset Protection Trust be protected?
@@Steven-vi5nb Yes, I now understand your question. A claim made against you should not be enforceable against the assets held inside of the NAPT (this assumes it is properly set up). Keep in mind with NAPTS they are very technical and must comply with the statute to pass muster.
@ClintCoons
I have a commercial property. I want to pay you guys to set it up this way for me.
Wyoming LLC
Operating agreement
And I have a business LLC I’d like to move into the holding company as well.
How do I make an appointment to talk to you?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
So damn good!!! Thank you very much
Thanks
Need to book a meeting asap.
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
When you set up your UTAH LLC what do you put on the documents to show that the Wyoming llc is the owner?
The name of the WY LLC
Clint Coons you are fucking awesome dude!
Hah - thanks
❤❤❤
Why would you be collecting rent and retaining cash in a property’s LLC? 🤢
RENTAL LLC ➡️Holding company ➡️you ➡️other cash holding company. 3 minutes to save your cash
Wait. Waht? Your tenants meth lab blows up your house and you don't want to be liable? Yep. Sounds about right. LOL
👏👏👏👏😇