Posted by JHyre in Ohio on February 16, 2002 at 05:51:50:
SMLLC is an LLC with only one owner. Most states treat them like normal LLCs, except that the ability to protect oneself via charging order in a lawsuit is questionable. The IRS completely ignores SMLLCs…from their standpoint, it’s as if the owner were doing everything that the LLC in fact did. So you get some liability protection, but simpler tax treatment.
If you purchase in your name, you can transfer to entities later on, but it tends to be a pain for two reasons: bank permission or refi is needed (though if you see how land trusts work, you could probably get around the bank covertly) and loss of privacy. It is best to purchase in land trust’s name, and make your entity the beneficial owner of the land trust from the get-go. See the following articles for more info and then come back with more specifc questions:
http://www.creonline.com/articl53.htm (why trust helps move financing, part I)
http://www.creonline.com/articl71.htm (trusts & Due on Sale, part II)
http://www.creonline.com/articl96.htm (minimizing liability)