What to consider when setting up an LLC depends upon your area, but there are common processes that you should follow. These LLC tips for real estate investors will get you started.
The first step is choosing a name for your real estate LLC. There are words you may not use, for example: corporation, incorporated, city, insurance, and a few more. Your LLC name has to be unique. It cannot be the same name as one on record with the state you are filing in. Your new business name has to end with LLC or Limited Liability Company.
If required by your state, then you must publish in your local newspaper your intent to form an LLC, before turning in your Articles of Organization. Do not waste money to do this if not required.
Contact the Secretary of State’s Office to get a copy of the LLC Article of Organization form. They can tell you if it is required to place a notice in the newspaper. Ask about your business name and any other questions pertaining to an LLC for real estate investors.
Now fill out the LLC form with all the correct information. Just list the person designated as the registered agent. The owner and management structure do not have to be listed at this time, just the names of the LLC members. Make sure you list the correct physical address of the new business.
Now, there is one more step not required by the state. An LLC Operating Agreement is needed if there is more than one owner. Everything has to be spelled out in detail on the management responsibilities and rights of each person including financials. Make sure things are in writing and legal and binding. This helps with friends or family if they are now part of the business.
What to consider when setting up an LLC? Think of it as a house you build: You are creating a unique address and laying the foundation when you create an LLC. For more great information on real estate investing, contact Equity Builders Group at 941-718-7761.