My goal for the next couple of years is to flip. Not hold property. I want to set up my business correctly from the get go.
I wonder what seems to be better, to name your LLC as a person or with a fictitious name. In example
Let's say I am John Doe
1) John Doe, LLC
2) John Doe Homes, LLC
3) Starlight Flip, LLC
4) Frank Wilson, LLC (not real person and not my name)
If you use a personal name do you use your real name or you make up one to keep your real name more private to public searches?
What would you suggest I set it up?
Also, I have been reading a lot about opening the LLC in Delaware. I live in the south. Why would I want to do this vs opening it where I will be conducting business?
There is definitley no right or wrong answer to this of course but I think there are a few rules of thumb I would apply:
1) Keep it professional
2) Do not relate it to flipping...this can have a
negative stigma to some people and you
may change your business model over time
3) Check with registered businesses in the
state you open your business in to make
sure you do not pick a name that can get
confused with another business
You are going to want a name other than your name. Forming an LLC is to create a separation between you and you business. So you are going to want to keep it separate, give a name other than your own.
You're going to want to file the LLC in the state you plan to conduct the majority of your business out.
Best of luck =)
Edited: 02/09/2011 at 11:45AM
by Administrator
: Solicitation Removed
1st off, this question is asked by a new user about every other day. So why not spend some time using the search feature!
Why do you NEED to set up your LLC? You said you won't be holding any property. What is the LLC going to do for you right now, other than cost you money and time to set up? Maybe your efforts are better spent getting some deals under you belt. Just my 2 cent
I don't know, why don't you let me know why I don't need an LLC to flip homes? I really need to do this right. You will save me a lot of time and money if I don't need one, but it seems that most everyone on this forum has one set up for their business flipping or even wholesaling.
Also read a lot about forming one in DE and rehabbing in a different state.. some say don't do this it is not necessary and some say do it. Trying to make sense of it all.
You need to learn how to search these forums. The answers to all your present & future questtions have been answered in depth. After reading everything, let it sink in for a few days. Only ask questions you can't find answers for. That would be a great start.
I think the best advice I can give you is this. Slow down, take a deep breath, RE is not something to jump into. Spend the next 1 year minimum doing everything a RE pro does, except making offers. You need to know you're market, and methods of obtaining deals. Do you want to make a huge mistake and pay for forever? Then please, go slow, study hard, and ask questions that don't already have abundant answers ;-)
I have searched the forum extensively and yet I felt like posting my own questions. Is that something that I shouldn't do because you don't like it? What are you the forum police? LOL.... :wink: kidding aside..your best advise was not very useful, try answering the questions I asked and then I will certainly thank you. If not, why do you bother posting on this thread if you can't contribute to the topic?
Mark, I created a thread about how we seasoned members need to be more tacktful in response to newbie questions rather than blasting them. Reason being we want to encourage them all to stay here and stay active, not scare them away or make them feel intimidated to post.
That stated, I must respectfully disagree with your advice.
I recommend (only a recommendation, not legal advice) to use entities as an added layer of liability protection in addition to great insurance. The OG poster is new and has shown a determination to succeed at RE investing and I and the rest of us would like to encourage and assist that endevour.
I flip properties and I have NEVER flipped one in my personal name. Also, it is an unfair assumption to state that ALL of J M.'s future questions are already covered in BP. We all know that there is quite a bit of info here and many topics have been covered num,erous times, but the fact remains that new life to old topics brings up new answers and fresh starts to many questions. This is one of many things that makes BP Nation great.
So J, keep posting your questions (that goes for all new members and seasoned members alike), there are many here who will engage you.
Happy investing! :D
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
Most flippers use an S Corp or LLC taxed as an S Corp. I would set it up in your own state. I have a couple companies, some with my name and some without. I prefer without only for some level of secrecy. You will run across some people in this biz that you want as much protection/secrecy as possible.
I agree with Will and Wheelhouse. If you are prepared, have a business plan, and are ready to go, then set up an LLC. Do so in your own state. Get an experienced business lawyer to do it for you.
thank you folks! I will set up in my own state., I will ask for a referral for a good CPA at my local REIA and attorney,, to clear up some doubts..
I appreciate your input!
