LLC Needed For Our First Investment?
My partner and I are about to secure our first property through a short sale. We will incorporate in the future, but should we set up a LLC to put this property under? How much would it cost to do so? We are in Georgia. Thanks in advance.
Consult with an attorney,but it will cost about $500.00.
I definately recommend using an LLC to own rental property. Start interviewing attorneys. I use three actually. The one I use for my corperate work charges strictly by the hour. My first entity cost me an hours worth of work and my future entities cost me about 5 minutes. Very economical.
Keep in mind the secretary of state also charges fees.
GOOD LUCK
Setting LLC actually is a simple task. The fee is different from for each state. For example, in AZ the LLC fee is $50, while in FL $100.
If you plan to setup many LLCs, I suggest you purchase "Limited Liabilit Companies & Family Limited Partnership" by William Bronchick. You can get it on ebay for less than $200. You can buy a new one from legalwiz. If you only want to setup 1-2, then it's worthed to pay somebody else.
EW, this may be a crazy question, but why would I want to setup more than one LLC? Why not just create one for my partner and I and put all properties under it?
Thanks in aadvance.
liability. if someone sues one of your llc's, your eggs arent all in one basket.
ok, thanks red.
Yes. Red was right. Also you have to weigth time/cost vs. protection.
An LLC is also a good time and place to put together a good partnership agreement. I'd have your attoorney look over yours, and his attorney look over his so that there's no conflict of interest or anything under the table.
If you wern't doing a partnership (ie, flying solo) I'd say do an LLC if you can and it's convenient, but first and formost figure out how to buy your first deal and get that done, and then worry about other details. I'd make an exception to that if you had a large personal net worth or income.