What are the circumstances appropriate for having unlimited entities?
In this episode of Coffee with Carl, attorney Carl Zoellner guides you through the process of using unlimited entities.
One of the things we do at Anderson Business Advisors is set up business entities.
Over the years… decades, our clients have exponentially grown and unlimited LLCs became a service we delivered in response to demand.
So, today I’m covering if and when unlimited LLCs are right for you.
For starters, If you’re actively purchasing rental real estate, or you’re doing flips, wholesaling, stock trading, etc. then these LLCs can be used.
Who does that make sense for?
Anyone who’s planning to set up three to four additional business entities over the course of their lifetime. That’s the barrier to entry. If you’re already over that, or you know you’re going to be way over that, then it sort of becomes a no brainer.
I say that because our clients, on average, are very long-term clients. And so if you’re actually working off of a flat number versus paying the same per entity a la carte, the more entities you set up from an unlimited package standpoint, the cheaper per entity it is.
So usually, like I said, if you’re in that upgrade range at $8,000, if you’re going to set up about probably three, maybe four more entities during the course of your lifetime, it’s a great place to be.
Some other things to consider as mitigating factors are, do you have existing entities that need to be fixed or redrafted? Usually a redrafting of a business entity for our Platinum clients, on average costs about $1,000. So say if you’ve got three or four existing entities, or maybe even one or two, that gets tossed in with that same price, not additional cost.
All these things go into the analysis when we’re advising our clients on what’s available at the moment and what’s the best fit for you. If you’re going to set up four or five different business entities, it’s always better to work from a flat rate than it is from an ala carte. So, take a look at what each individual person’s doing, where they’re already situated, or what they’re already doing.
And then run those numbers.
Until next time, thank you for joining me on this “Coffee with Carl.” I want to make sure you keep continuing to take advantage of all of our free content that’s out there. We love educating, love helping everyone wade through the waters of legal and tax.
Catch you on the next episode.
In short, four or more (in a lifetime), and it’s a go.
As always, take advantage of our free educational content and every other Tuesday we have Toby’s Tax Tuesday, a great educational series. Our Structure Implementation Series answers your questions about how to structure your business entities to protect you and your assets. One of my favorites as well is our Infinity Investing Workshop.
- Claim your FREE Strategy Session
- Join our next Tax & Asset Protection event to learn more advanced tax minimization & entity structuring strategies
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