Questions About LLC
Do you have to have a business license to start an LLC, or can you just open one without a license? If I didn't open one, could I use land trusts, or would this even be necessary for doing wholesaling, buying, flipping, ect?
You do not have to have a business license to start an LLC. As far as land trusts, what is your goal?
You do not need a business license to start an LLC, however your city, county or other local govermental agencies may require some type of license, permit or other registration to conduct business in thier jurisdiction. You should consult with a local attorney to make sure that you have complied with local requirements.
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I too want to start an LLC. Goal is for me and two other partners to buy an investment property to live in for awhile and then keep to rent out eventually.
I have read up on how to start one and what my state requires, but I am a little confused on how we get money from lenders and how to buy the property...
Do we each secure money from our respective lenders, then all sign the purchase agreement, then transfer the property/sign the property to the LLC?
I think I heard that lenders will not readily lend to LLC because of their limited liability.
I hope this all made sense.. let me know if you need clairfication.
chris[ Edited by frantzyy on Date 07/14/2004 ]
I to am interesed in this. After you assign the home to the LLC, are you still liable for the loan as far as credit is concerned? Any info will help out a lot.
I to am interesed in this. After you assign the home to the LLC, are you still liable for the loan as far as credit is concerned? Any info will help out a lot.
If you are going to purchase REI through an LLC, you should do it as the LLC. The bank may require you to co-sign the loan (personal guarantee) but it will never show up on your credit since it is owned by the LLC.
If the mortgage is assumable, you may be able to have the LLC assume it if you purchase it personally first and then want to transfer it to an LLC. You are, of course, still personally liable should the LLC default.
You need to be aware that mere purchase & ownership of RE is not necessarily DB (doing business) in any state.
There is an extensive body of law on this issue and you'd need to have somebody do some legal briefing to tell you with any real authority that this would or would not be DB in that state.
If it's NOT, then no Biz Lic. is required.
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We would like to QuitClaim the Deeds on our 3 REI properties from ourselves, husband and wife, to our LLC in NV. Does anyone know if we need to get the approval of the mtg company first before doing this?