IL estate lawyerReal estate investors would be wise to take steps to limit their liability and protect each individual investment property. There are real risks associated with real estate investing, no matter how cautiously you plan your projects and how carefully you select the properties you buy. A single high-dollar lawsuit can collapse a budding real estate empire in the absence of proper legal structuring. One way to limit your risk is to create a series LLC in conjunction with a series of land trusts. Structuring these entities properly can be legally complex, so you must work with an experienced Yorkville, IL real estate investments attorney.

Asset Protection Through a Series LLC

A series LLC is a type of limited liability corporation that can hold numerous subsidiary companies under the same corporate umbrella. This structure offers the convenience of managing a single LLC rather than creating numerous corporate entities. Each time you invest in a new real estate project, you would open a new series. Creating a series LLC can allow you to keep different real estate projects separate so that if one becomes financially compromised by a lawsuit or other liabilities, the rest are not affected. So, if Series A is sued, assets contained in Series B and C are safe from liability.