How To Maintain Your Asset Protection Plan
The number one goal of a short-term rental investor should be to protect the investments they have worked hard to obtain. This is achieved through a comprehensive asset protection plan that provides clarity and peace of mind. What happens after your short-term rental protection plan is completed? Are there certain maintenance requirements that must be followed?
Depending upon the entities created for your asset protection structure, you may have to invest in certain expenses to maintain the integrity of your asset protection plan.
However, our goal at STR Law Guys is to simplify and create a worry-free maintenance service to our clients so that you can focus your time and effort into growing your short-term rental portfolio. As such, we created the Corporate Governance Fulfillment Program. In addition to addressing the basic concerns of maintenance and state-compliance, it is important to have your asset protection strategy evaluated regularly to ensure your newly acquired investments are implemented into your asset protection plan. Before we get into the specifics of the Corporate Governance Fulfillment Program, we need to address the maintenance requirements of different asset protection entities.
Below, is a breakdown of the examples of what we provide as part of the ongoing maintenance of your asset protection plan:
LLC Maintenance
Depending upon the state you register your LLC with many states require annual reports to be filed and fees associated with this reporting. Additionally, most investors prefer to establish registered agent services, annual meeting minutes and unanimous consent instruments, as well as coordination with their accountant and other tax professionals for state and federal filings.
Limited Partnership Maintenance
Fortunately, one of the most beneficial aspects of a Limited Partnership entity is that there are very few maintenance costs or requirements associated with a limited partnership. The structure is perpetual, requires no filing fees and usually only requires a federal 1065 partnership tax form to be filed annually.
Trust Maintenance
Determining annual compliance and maintenance costs for a trust will depend largely upon whether you have a foreign asset protection trust, domestic asset protection trust or family living trust. The maintenance requirements and costs for a family living trust and domestic asset protection trust are negligible. However, if you establish a foreign asset protection trust, filing and reporting requirements both domestically and internationally can run a minimum of $10,000 per year.
The Corporate Governance Fulfillment Program
At STR Law Guys, we offer a corporate governance fulfillment program that helps short-term rental investors establish a worry-free maintenance program for their asset protection. The program includes the following:
- Registered Agent Services
- Annual Meeting Minutes and Unanimous Consent Instruments
- State Report Filing Reminders and Coordination with your CPA or other tax professional for state filings
- Annual 1-hour corporate health check-up call to answer questions and determine if your asset protection plan needs to be modified to meet your needs as growing short-term rental investor.
By partnering with the STR Law Guys, we will provide the Corporate Governance Fulfillment Program as part of a comprehensive package to not only provide an effective and simple asset protection plan, but also ensure you do not have to worry about how to maintain and update your protection plan for your growing short-term rental portfolio.
