Another LLC Set-up Question
I am trying to set up a LLC for "real estate investments", to hold property (buying, holding a year or so and then selling). Do I do a single member or muti-member (husband & wife) LLC? What are the pro & cons of member-managed or a manager-manged LLC? Does it make sense to structure LLC as single member (my wife) and me as manager? Any better way to do this? Thank you.
Another reason for having you both as Managers is if and when one of you dies, the other is already a manager with authority, and also on the bank account so he or she can continue to run the LLC.
On RE, whereas any title co. will demand some evid. of what survivor has done for probate, a bank will not ask any questions of whoever is already on the account and survivor can write checks sans probate.
If both of you will be members of the LLC, you will need to form the LLC and get a FEIN. This can be obtained by completing IRS Form SS-4. If it is a single member LLC a FEIN is NOT required (the single members ID can be used).
So I only need to apply one FEIN for all LLCs (I have different rental properties in CA, AZ and nevada ) Thank you
Thank you all for your reply.
You need to find out if she alone, as executer, has the power to sign a purchase and sales contract and did she properly sign the P&S?
Helen Smith, executer of the Smith Trust