Series LLCs for Real Estate Investors

Series LLCs for Real Estate Investors

Series LLCs for real estate investors are a critical component of asset protection. Sean Robertson and Gateville Law Firm provide value oriented legal services for real estate investors and families. Our firm as unmatched expertise in asset protection and Series LLCs. Attorney Sean Robertson is unique because he combines his real estate, estate planning, and asset protection law practice to assist real estate owners and investors with their legal goals.

What are Series LLCs?

A Series LLC is unique to Illinois and small selection of other states. Series LLCs are business entitites where a real estate investor pays more for the first LLC or adds onto an existing LLC. According to the Illinois Secretary of State, Illinois is among only a few states throughout the country that permits the organization type of a LLC “series” or “cells” that have their own interests, liabilities, and members.

Filing Form LLC-5.5(S)

The Series LLC addresses a major issue in terms of cost factor.

Corporate and Real Estate Attorneys recommend that each real estate property have its’ own Limited Liability Company (LLC). Previously, each property having its’ own LLC was costly, as LLCs in the State of Illinois cost a minimum of $500. Furthermore, each LLC required its’ own annual report.

The cost associated with maintaining an LLC per property was prohibitive and came with significant requirements. Series LLCs enable a real estate investor to purchase an LLC as part of the “series” for $50 per LLC. Furthermore, the Series LLC only has one annual report due for the entire series.

Segregating Liabilities

Series LLCs provide the ability to segregate risks of multiple property ownership.

For example, John Smith is a real estate investor who owns four investment properties throughout the Suburban Chicago area. Unfortunately, many real estate investors own their real estate investments in their personal name or their spouse’s name. This causes significant concern because one lawsuit or judgment will jeopardize a couple’s entire real estate portfolio. A judgment in John Smith’s name will also automatically attach to any real estate properties in his name. This is a major problem because John Smith cannot sell his real estate investments without paying off the lien or judgment that has attached.

Moreover, this causes a lack of flexibility. During the Great Recession, real estate investors strategically defaulted on their properties. If you own multiple properties in your individual or family name, this limits your flexibility because one foreclosure lawsuit or judgment threatens your entire real estate portfolio. Series LLCs are designed to counter this problem and segregate liabilities associated with one property to solely that property.

Series LLCs and Lack of Estate Planning

Another major problem is a lack of estate planning for families. We often see landlords and real estate investors who own multiple properties, but have failed to implement a solid estate plan. Many real estate properties will have significant equity, yet investors have no set their asset protection goals in motion.

Gateville Law Firm would like to change this. We concentrate in estate planning, asset protection, and real estate asset protection for real estate investors. Our typical client are experienced real estate investors who want to invest in their financial and legal future. We provide value-oriented legal services and seek to be your lifetime partner, protecting your hard-earned real estate investments and equity.

Landlord Evictions

Sean Robertson and Gateville Law Firm work closely with real estate investors on their real estate closing and eviction landlord services. One lawsuit or liability threat can jeopardize you and your family’s financial future. Often, couples make a mistake of having both of their names on the real estate title. Sean Robertson and Gateville Law Firm understand how land trust, living trusts, powers of attorneys, and series LLCs combine to provide you and your family piece of mind and financial security.

Let our team at Gateville Law Firm assist you with your real estate problems and concerns. We can be reached at 630-780-1034 or via online contact form.