My partner and I have decided to create an LLC for our rental property investing. However, we are not sure if we should hire a professional (Lawyer), an LLC service company or set it up ourselves. It seems pretty straightforward to set it up ourselves but we also want to make sure its done correctly so that it offers us maximum protection in the future. If anyone has any advice, we would greatly appreciate it. Thanks!
Rental Property Investor · Aurora, CO · Member since 2014 · 22 posts · 23 votes
4y
@Denver Chavez. Your use of the word "partner" = you should definitely use a lawyer. And while there, you should draft the legalese necessary to dissolve that partnership. Not because all parentals fail, but because, over time, both of you may not precisely remember what the other said 5-10 years prior. In writing makes it clear for everyone and that avoids so many hassles later.
Contractor · Hayfield, MN · Member since 2017 · 6 posts · 3 votes
4y
Hey Denver,
I personally set it up myself, and agree that it is a fairly simple process. But I haven't had an issue where I have needed it either, that might be when I find out if I set it up right... probably not the best time to find that out. :) I'm not to worried about having set mine up by myself, but if it would give you peace of mind to have an attorney help you, I think the little bit of money you'd spend on one, would be money well spent.
My partner and I have decided to create an LLC for our rental property investing. However, we are not sure if we should hire a professional (Lawyer), an LLC service company or set it up ourselves. It seems pretty straightforward to set it up ourselves but we also want to make sure its done correctly so that it offers us maximum protection in the future. If anyone has any advice, we would greatly appreciate it. Thanks!
Denver, it's quite straightforward to set it up yourself. However, it'll be much more efficient if you use a service like ZenBusiness, LegalZoom, or IncFile. They'll not only ensure you file the LLC appropriately, they'll prepare your Operating Agreement and obtain your EIN number for you. Of course, all of these are easy enough to do yourself. Seriously, this is a very easy process.
Thank you for the response. ZenBusiness seems like it would check the boxes of convenience and also making sure it gets done properly.
I was listening to a podcast recently where the speaker (who was a lawyer), said something about how often new clients come to him to fix "LegalZooms mistakes" when it comes to LLC's. Not knowing much about the process, this had me a little worried that I needed to seek out the best lawyer possible if I wanted an airtight LLC.
Rental Property Investor · Aurora, CO · Member since 2014 · 22 posts · 23 votes
4y
@Denver Chavez. Your use of the word "partner" = you should definitely use a lawyer. And while there, you should draft the legalese necessary to dissolve that partnership. Not because all parentals fail, but because, over time, both of you may not precisely remember what the other said 5-10 years prior. In writing makes it clear for everyone and that avoids so many hassles later.
Thanks for the insight, you make some very strong points and we will definitely be taking your advice and drafting up an agreement between the two of us.