establishing an LLC

[PhillyB]

anyone done this? i'm weighing the pros and cons of expanding my real estate investments under an LLC rather than as personal property. i've found a fair amount of info on google searches but i'm curious if anyone here has personal experience with this, either the process of establishing, tax benefits/disadvantages, etc.

[pstall]

What does your tax advisor say to do? I would start there.

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[Anybodyhome]

I had an LLC in Virginia until last year when I moved back to NC. I was my only employee and it allowed me to simply track my expenses and profits and let my accountant include it on my annual income taxes.

 

I applied and paid for a business license, established a PO Box under the LLC, set up separate bank accounts and got a local small business start up grant to design and host my web site.

 

It was all very easy. If you're going to work for yourself, it's just an LLC Sole Proprietorship.

[PhillyB]

What does your tax advisor say to do? I would start there.

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i don't have a tax advisor.

 

i'm tossing a bunch of different ideas around at once. i've paid off my first property, opened up a line of credit on it, bought a second property, and i'm scrambling to renovate it and pay it off now; i'm still on track to be able to develop a line of properties with established tenants over the next two to three years so i can buy a large piece of land and start building my commune/phillyb cult.

 

i actually just came across a piece of land today that's absolutely freaking perfect for what i want to do (though terribly expensive) so i'm weighing options and trying to figure out if there's any way of expediting these processes by using an LLC. i don't want to make the mistake of falling in love with a piece of land and limiting myself when something just as good can open up down the road when i'm better prepared to jump on it, but god damn i want this poo.

[pantherfan49]

There is a cost in having an LLC (I would estimate $500 a year in annual filings, additional paperwork, hassle, etc), but it is probably worth it to place these assets in, especially if one of your assets could subject you to some type of negligence suit.  

[PhillyB]

it's a $30 registration fee and $200 annual report filing fee in NC, if i'm reading right

[DirtyMagic97]

I own two real estate investment firms, both operating as LLCs. My lawyer and accountant both advised that I do it that way, obviously for liability purposes. It has also eased my tax burden. I recommend it.

[pantherfan49]

it's a $30 registration fee and $200 annual report filing fee in NC, if i'm reading right

 

Reg fee is definitely $125 or $150, can't remember which.  

[SmokinwithWilly]

I would recommend sitting down with a tax adviser and figuring out first what kind of setup you need. Corp, LLC , Sole Proprietor all have unique advantages and disadvantages. They may also be able to help you with setting up your business filings in another state for the tax breaks. 

[DirtyMagic97]

Reg fee is definitely $125 or $150, can't remember which.  

 

Yea, I believe my annual report was $125 each.

[Anybodyhome]

There is a cost in having an LLC (I would estimate $500 a year in annual filings, additional paperwork, hassle, etc), but it is probably worth it to place these assets in, especially if one of your assets could subject you to some type of negligence suit.  

 

it's a $30 registration fee and $200 annual report filing fee in NC, if i'm reading right

 

Reg fee is definitely $125 or $150, can't remember which.  

 

 

Yea, I believe my annual report was $125 each.

 

Holy crap! 

 

I paid $50 a year to the State Corporation Commission in VA and didn't have to file an annual report.

[pantherfan49]

I'm happy to recommend a good biz atty to help you out on this if you like.  A lot of this you can do on your own though.

[Ja Rhule]

Can't go wrong with LLC, good choice. Let me know if u need help establishing P&L.

[thefuzz]

Just do it through legal zoom.

 

I own 2 LLC's, one construction one real estate leaning, did both through LZ.