LLC Benefits

Congrats on your success in getting set up. You are doing it right so keep it up

For someone who just started out ...it looks like you and your wife are doing a great job.

feels like both of you are on the right track...very positive energy.

as you can see im a typical chinese with a thing for the yin n yang stuff.

i just bought dean's book, never invested in properties in the good old USA...yet

but am looking at it... anybody knows or can help foreigners from sunny island singapore invest in properties in USA?

what i/we need to get started...LLC, tax stuff, loans etc

appreciate all the help i can get.

http://www.deangraziosi.com/node/3355

I pay $800 per year in Ca to the state for having an LLC. It must be different in different States?
jrgnsn

From what i have read so far it looks like you are the Owl(wisdom)

its very touching to see someone taking the time to post so often with great advice.

i hope you willb able to take me under your wings, and help me invest in the USA property market.

i've been to LA, SFO, NYC, and Huston and its a great place your country.

now its time to hopefully one day stay there for good.

but first i/we need to establish some wealth.. i hope you are able to guide me on the fastest road.

i/we really appreciate you time and trouble

Charles

tks

jrgnsn, i will start a file for CA.

mayb next time i'm there in LA we can share more notes.

as we normally stay in LA.we wld like to look at some properties.

Yes.. every state has different laws eg it's 125 in NV.

I have my home Corp set up in Nevada and it saves me thousands compared to the LLC I just had transferred to California

Anita.. if you do biz in Cali.. then Cali will still want their cut. If you do not register in Cali as a foreign LLC then you do NOT have an LLC in Cali..

Yes Mark I know this and I am registered in Cali as a legal LLC. But its just the pricee of doing business here that bugs me. Its got to be the highest in the nation.

and it was like between $150-$450 to set up a LLC...so how did you only spend a measely $48 bucks? YOUR HERO,SULLY.

try going to your state website. I think it cost me like $139 for Wisconsin. I believe each state is different.

Can you tell me more on where to get info on series llc's

I agree with what you posted 100% and was wondering if you could email me with info on where to register a domain name for $48.00 for 3 years thank you and have a nice day

Bexsentico,

See info at bottom of page from my original post on 04/30/08!

I blured those details together a little, sorry.

Website at www.ipower.com cost $48.00 for three years of my own website management and the tools to build more sites (normal cost is 7.95 monthly), I got a great price. and I can have up-to 25 different web sites and 30 email addresses for the same cost. They included one year of domain name reg and I paid an additional $14.00 for the next two years (normally, $19.95annually). I am using Frontpage 2002 to build the site. I just added our two rentals and put one of them on the for sale page while we are remodeling it, if it sells great if not it is financially positioned to rent for a profit.
__________
Regards,
DeJor Properties, LLC

Previous post with the datails below

I have one of each of these. One difference is that LLC's are supposed to distribute any cash on hand each month except for what is held for taxes, ins, and other normal business expenses. The LP can hold money in it and collect interest. Our LP has most of the assets in it and all the partners are limited partners, except our general partner (3%) is our LLC. People who may want to sue the LP can only sue the general partner, and no one ever tries to sue an LLC because their is never any cash in it, and all you can sue for are the cash assets at the time. The discounted benefits of the LP are really a big help as each year I pay very little tax.
Jrgnsn

Protection comes in two flavors, one from the entity owning the property to keep the entity's assets separate from personal assets; and the other from keeping your identity from the public, so the attorneys have trouble learning what person can be sued. Umbrella insurance is good to a point, but it can be limited to less than some courts award, and it can be expensive.

Posts above have a lot of pointers, and the LLC seems to do the first goal just fine. Also consider a Limited Partnership (L.P.) instead of an LLC. This is especially valuable with rental property, since anybody can sue the owner of rental property, even if you don't do dumb things. L.P.'s require a General Partner (G.P.), and that's where the goal of anonymity comes in. Having a corporation as the G.P. really assures anonymity, and companies can act as nominee officer/director. The corporation by itself may not be useful, though, for protecting assets, as the G.P. is not protected. Comments above about institutional lenders not being willing to loan directly to young entities is very true, but they mostly will for commercial properties (over 4 units) if you personally guarantee the loan. If the G.P. is located in a state that caters to entities, like NV and WY, there is more protection of privacy. True, these entities require record keeping and license fees, depending on the state ($800/yr in CA). And each has to file an income tax return, federal and state, but the LLC's and L.P.'s pass through the income/loss onto your Schedule E, so it is easier than lumping everything into your personal return if you have several entities.

Beginning investors should definitely have their property and other assets in their name as trustees of a revocable living trust, as Suze Orman preaches on CNBC. That avoids probate on those assets and saves a huge amount of money in states like Hawaii and California. When you form entities, their interests can also be trust assets. There is a lot of good printed material, and you may be able to find a reasonable-priced attorney if you aren't comfortable doing it yourself.

Hi,

I have a question concerning turning my primary residance to a rental and my LLC is in the works, I'm waiting for it (7-10) days, my goal here is to rent the primary and put it to the LLC and buy a fixer and move into that, my question is what does this entail as far as putting the residence into the LLC how would I go about this?
Any advice would be great or additional options Thanks

My guess is nothing. Single person LLCs are pass throughs as far as the IRS goes.

You could always Quit Claim the PR to the LLC but that is probably not the best solution. Better would be to Quit Claim the PR to a land trust then write a transfer of beneficial interest to the LLC.

Call me naive, but why do you need umbrella insurance if you're doing everything on the level?

just because you are doing everything all legal and on the level does not mean the next guy is, or your tenant. I have seen tenants that were in a bad financial situation or behind on rent file suit against the owner/landlord with things like the kitchen light switch shocked me (and they were the one that pulled it out of the wall), or I fell down the stairs because the board we loose (and they pried it up) or the place has given me infections (and they are the ones not cleaning up and got the bugs infestation).

So you can see that any overkill in protection as the owner is very necessary.

I have a LLc cost me $2,400 I used an Attorney.

I am a knew REI, and have read Dean's book half way thru. I have visited the web site a few times, and have read some of the comments about the LLC, LP,Series LLC. cAN Someone help me to understand the difference between the three?

Would you mind 1 more question, if I do the primary residence to LLC do you know what the property tax ramifications would be I'm in the state of Florida, not sure where your at, I appreciate the imput. Pat

im just blown away with all the advise on here , im sure glad i joined !!!!! i wish i could convince my 60 yr old dad to join but hes been in realastate for 30 yrs and
set in hes ways , hes got decent properties i just think if he listen to dean this wouls in hance everything for hoim instead of worry each omonth if hes in the green or red .i just had to make a comment thanks
mike
wasilla,alaka

I am also new to real estate. Am working on getting a LLC now through an attorney. All of the advice and tips are wonderful. I would appreciate any advice on Virginia laws.

I've been on the Dunn & Bradstreet website and I didn't know which products to purchase. Since you've already been through the process could you explain to us what to do step-by-step? I've been researching getting an LLC for a few months now so I can get business lines of credit of up to $500,000.
I would greatly appreciate it, as I'm sure many others would too.
Thanks,
Elena

To those out of state investors:

My LLC is registered in Montana but I want to purchas properties in Georgia under that LLC. has anyone ever had any problems investing under their LLC in another state?

Thanks,

Roni

you must register our LLC with that state as a foreigner corporation and all hat takes in making application with the states revenue department

just to let ya know im taking notes on this
thanks for the infor