LLC Vs. Private Ownership
We own a 4-family house. Several attorneys have strongly urged that we transfer title to an LLC. However, we could not find a lender to place a mortgage on an LLC. So, we refinanced other mortgages, cashed out, paid off the loan on the 4-family, and transfered title to the LLC. Several questions: Did we do the right thing? Do other investors buy most of their properties under an LLC or personally? Where can we go to get a loan on a property owned by an LLC?
A commercial loan officer should be able to help you.
You will have to register your SC (LLC / Corporation, which is it?) as a foreign (whichever it is) with the Ohio Secretary of State. Your business entity will need to comply with Ohio Tax laws so you will need to seek professional tax advice as to the advantages / disadvantages of utilizing your existing entity vs creating a new entity from a tax standpoint. Issues such as the number of members and the taxation election you have made with the IRS will need to be taken in account when you make your decision as well.
Hmmm ... I never ran across that problem since I am a resident of Ohio.
A quick Google search for "Ohio Registered Agent" comes up with several companies that offer this service for $99 - $149 per year .... that is one option. Another option would be to see if an attorney in the state offers this service.
The simple way to protect yourself on this is to form an LLC and both of you take % ownership of the LLC; then have the operating agreement clearly state that you are being given units of the LLC for your services as experienced advisor, etc.
Then have the LLC buy the property.
If you were to just bill him for your consulting services you could run afoul of the RE licensing laws as only a licensed attorney or RE Broker or Agent can legally charge fee for consulting on RE issue.