So I'm totally lost.
I'm an out of state investor about to go into contract on my first rental in Georgia. For the time being I'm going to go as a sole proprietorship, eventually hopefully in a year or two I'll make it into an LLC.
As I understand it, I need to register in Georgia as a business with the state, as well as with the county. To do this I need a federal EIN as well as a state EIN. Do I also need to register in my current state (Washington)? I thought that if you're owning SFH and not in an LLC form you can run taxes etc on your personal income tax statement?
Would it be better to contact an attorney/CPA in the state of Georgia to handle setting this up?
If you're a sole proprietorship, then your EIN is your SSN. Your tax situation can differ depending on whether you're looking to buy/hold/rent or flip. Out of state sellers who do not file a GA tax return get stuck when they sell real property, as the closing attorney has to hold back 3% or more of the sales proceeds for GA tax purposes. Why would you not just go ahead and set up an LLC? Most attorneys will do them in the $500-$750 range, and it can save you a lot of headache. I'd contact an attorney, not just in GA, but in the specific county where the property is located, and see if they can handle both the LLC setup as well as the closing for you. They'll also have an accountant or two they can refer you to.
I was under the impression that lenders wouldn't lend (or make it very difficult) to an LLC and/or you risked them calling the note should you transfer after the sale.
My plan is a buy and hold rental if it matters. I'm not opposed to forming and LLC, but on the surface it seemed harder than it's worth.
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