BiggerPockets

Do I really need an attorney just set up an LLC? If so, why?

Do you include your spouse in the LLC or keep it soley in your name?

As always I appreciate all the help..

Brian, can you be more specific about the court decision?

Hi Jason, you should use a general warranty deed of a special warranty deed to convey to the LLC. A quit claim will work but it can also cause title problems in the future. A quit claim only conveys that interest which the grantor MAY have at the time without any warranty. Using the warranty deeds will allow the title warranty and coverage to flow through to your LLC, (your LLC will not be insured for title without a new policy). On the other matter, the more people in an LLC the better as a one person LLC is seen as a propritorship, not a partnership. Be sure to maintain the minutes of your LLC, if you don't run it like a separate entity it won't work like one for you. An attorney can provide safeguards that are not contained in boilerplate forms, special provisions that will assist you in your growth, allowances for future partners and employees. Had it been drafted properly in the first place for example, you could admit birddogs that could not vote or have any managerial interest in your company, but could be seen as acting as a principal and be paid through the company, just as an example. If you do the deed yourself, be sure to use her maiden name as grantor and say also known as Sara S. and Jason S. together with Sara S. (H&W). You are married now and the property was (is) in her name, but now you have a marital interest as her husband. Remember, it takes one to buy and two to sell, one to act as a grantee and two as grantor, just to be on the safe side. Good luck, Bill

Jason I don't think there is a simple answer to whether to include your spouse or not.

in NJ my CPA told me that if I have more than 2 people as members of the LLC that it costs $150 per person to file per year I believe, but if you have only 2 then it is $125 total.
I am one member and at first a husband and wife were going to be the 2nd and 3rd members.
Since they file their taxes together, tax wise it doesn't affect them if only one person is on the LLC both still get the benefit the way I understood it. So we just had the wife sign as a member of the llc because she is the one who does the accounting and check writing.

The husband however now can't sign anything for the llc etc..

Consult with your REAL ESTATE EXPERIENCED attorney & CPA and explain exactly what you are trying to accomplish with your business structure. They should have a much better answer for you.

If you don't know of any find your local REIA's and ask around to see who everyone is using.

J scott has some good interview questions to ask your CPA on his blog 123flip