LLC Benefits

this information is very helpfull

I have been looking for one for our website.

Presently I have been seeking transactional funding from different sources. The one thing i have found to be in common with each company i've approached is: They will only do the transaction with a Business entity such as an LLC. The benefits of having an LLC defienetely out weigh the cons as longas it is managed properly. (my thoughts)

Hopefully whatever your choices are, they lead you in a positive direction.

Nate, DG-er for life

That my was a long post. However!!!! It ranks up there with one of the most informative post I've read here on DG and there are quite a few of them. It took you a lot of time to type it. It just goes to show,this site and those on it are all about "TEAMWORK" and going that extra mile. I am 25 year Navy Veteran and one thing I place a lot of value in for sure is "TEAMWORK" Thanks for the time you put aside for this, as well as your efforts to clarify (And clarify you did).

A quote I got from Deans training -- "There is no traffic beyond the extra mile"

DG-er For life

Great idea. Although these property flips are designed to be profitable, as a new comer to the RE business you never know how it will turn out, so better to be safe than sorry.

I am going to ask if you can do this in CA because you know how the STate is

you guys are funny, I agree I started an LLC BEFORE I got my first deal a wholesale deal which is what I am solely doing and there was no need to get that but oh well 1k this yr I will pay to the St of Ca live and learn you are right just get started new REI & make offers in your name you are not going to hold them anyways then when you get more money & start buying houses yourself you can talk to a top shot CPA & set up a very cool LLC or series LLC or whataver.

wish I could only have paid $40 for my LLC here in the peoples republic of CA it is $800 a yr franchise sales tax whether or not youve made profit & another $500 to set up your LLC w/the State but Im not complaining it just is what it is & I mostly invest in other States now.

Your state is expensive.
One ways around this (in the future) is to get an LLC in another state. A common state people pick up cheep LLCs is in Utah. The total cost is about $72 dollars if you create the LLC yourself or several hundred if you hire a professional to help you.

You may need to register the LLC from another state in your state to do business properly but again this is a cheap alternative to creating an expensive LLC.

If you are the landlord and they sue, they sue the LLC not you if its in the LLC's name. Thats a huge benefit not to overlook. YOu could also consult a CPA and attorney because there may be tax benefits to working as a corporation as well

A great book on entities including LLCs is Start your own corporation by Garrett Sutton, Esq. That book was very informative and would be strongly recommended especially if you are trying to set up the entity yourself. If you do it wrong then you just wasted your money.

You are absolutely correct. Llcs have asset protection to them. They create a level of protection from personally being sued. You can add additional levels such as trsts and other llcs as well.

Dear Dean,

Great Philosophies and I did copied yours and I will just add the below and I will frame it so that my children can see it at the Dining Room, everyday we are having dinner as family.

1) Love God with all your heart and with all your soul
2) Love Others Above Yourselves
3) Love Unconditionally
4) Love Does Not Keep Any Record of Wrong
5) Always Pray to God for the Impossible to be Possible
6) A Family that Prays Together Stays Together

Thank you for sharing unconditionally.

God bless,

Lolina Porter
Glendale, CA

The limited liability company (LLC) is the most popular entity type for small to medium-sized businesses. LLC have the advantage of flexible income distribution, which makes it “easier to allocate profits and losses for tax purposes.it is required that shareholder's income and shares are proportionally related.Pass-through taxation, meaning that owners ("members") report their share of company profits or losses on their individual tax returns, thus avoiding "double taxation".

There are many pros and cons on this issue, whether to create an LLC for real estate. My attorney recommended against it for buy and hold real estate, and said to just get a good umbrella insurance policy in case someone sues you.

His exact words "LLC's just create a lot of extra paperwork and expense, plus most banks will not lend to an LLC for long term financing".

Do you own research of course but this has been my approach, and I've held real estate for about 12 years now with no issues.

- Tom

but this advice should ultimately come from an attorney..

WALT

I had great luck with using Legal Zoom to set up my LLC for my Real Estate business. You can do everything online and then someone from Legal Zoom will probably call you to provide any additional help you may need. You will get assigned a customer rep that will help you through the process if needed. It was a great experience for me and everything was done pretty quickly and for a lot less cost than having my attorney set it up. There are still additional costs involved depending on your state fees etc.
Hope this helps.

If you create your LLC 1st, Dun and Bradstreet will practically knock your door down or where out the ringer on your phone to get you to sign up for their service. Dun and Bradstreet is excellent at what they do. They will help build your business credit. But here is my recommendation. Start your business, start getting some deals going and make some money. If you don't have any activity and don't have any business going(deals), then they can't really help you create a good credit profile out of nothing. And... they are not cheap.
- this is all based on my own experience going through this process when I was just getting started - I didn't see the need to spend several hundred-$1200 to Dun and Bradstreet before I even got off the ground.

good stuff thx Kevin, i do want and will work on my biz & personal credit score this yr. for personal credit Dean recommends Philip Tirone & he doesn't really recommend anybody ever on here. I'm not sure for biz credit tho.

Purchases made through the “Earn Cash” section, through affiliated online retailers are run through the chosen retailer’s website. Once the sale is transacted, any cash back awards are automatic and posted to the member’s Perks Account; and are saved up and can be applied to other purchases, or transferred/redeemed to a PayPal account, larry weltman.

I read your posts above regarding of LLC.

Do you use ONE LLC for everything for the properties or, do you setting up each LLC for each property?

Thanks

Should I spend $595 to have an experienced real estate company that helps set up LLCs in Nevada or Utah because of nondisclosure laws outside my state of Connecticut? Taxes are also bad in CT. Maybe I should consider other states to form LLC & do business in other states
Veil.com is the company offering the service