Once I found out that ownership of an LLC in NV was not private, I started looking. The NV LLC security is based on case law in the NV courts, rather than their statute. Wyoming has similar protections but also is as expensive ($200 per year to report that the ownership has not changed is a racket).
I chose CO for 3 reasons. (1) I was going to start doing business in CO so I had to open one there anyway, (2) its on the web so I don’t have to mail stuff, publish it, etc., (3) the fee is one of the lowest at $25 and once you pay it, everything is done.
I also have an LLC in TX (we do business there) and in AZ (we also do business there). We used to have one in NV, which is where I picked up on the costs and what they do and don’t offer.
Hello!
I heard that is a good idea to buy any RE investment under LLC. I have read about it and it make sense, however, do you need to create a LLC everytime you buy a property or can be under one LLC? Hope to hear opinion. Thanks,
You will have a hard time with finding a lender who does not make you sign the loan and put it your name. Most will require the property be in your name to close the loan. What I, and a number of others I have read about, do is put the property into the LLC via Quit Claim after taking ownership. This technically violates the due on sale clause, but I have not heard of a “call” due to the transfer.
I create one LLC per property (using the state and street address) and create an operating agreement with the LLC I form to manage the property (collect rent, sign leases, and so on). I use CO for this because online creation of an LLC only costs $25 per. And the members are not available to a web search.
I use an attorney who handles my interests in the state. He only charges me if he has to do something such as receive a summons (in a lawsuit). You can call around and find someone who will do this for little or no charge. Some charge and some don’t. I can’t post his name here as thats like advertising, but calling down the Yahoo list for Denver or Colorado Springs should give you a set that will yield a low or no cost RA.
Oh, everyone requires an in state RA because if they need to serve court papers to your co, the courts have no authority to serve them out of state.
You may also want to check with the state you are in. They may require that out of state businesses register and pay a fee to do business. I do something similar to Rich but I do all of them in my home state of Michigan. Its much easier and I dont pay any additional fees for having an out of state business.
Don’t do business in my home state of CA and the asset companies do not need to register to own property, only to do business. For operational purposes, there is an LLC in each state where I do business whose function is to handle the in state business activities (like collecting rent, paying taxes and so on).
Rich, why Colorado and how many other states do you have? I looked into starting an LLC in Nevada and also learned about registering in any other state that you conduct business.