Do I need guidance in this category or do I just google "create my own LLC"? Just trying to gauge if there are any particular details I should know about or if it's pretty straight forward to figure out on my own.
Google is your friend, generally pretty straight forward but I have never created an LLC in Connecticut so your mileage may vary.
@Thomas J Mele I used Zen business to form my first LLC, however, I did hire an attorney to refine the operating agreement. I've heard good things about smallbiz dot com though from folks in my mastermind group. The biggest pain was actually getting the business checking account and credit card set up. It was not as easy as it is creating an additional personal checking account, but once I got it set up it's been pretty painless. I use Navy Federal Credit Union for both personal and business banking.
Best of luck and let me know if you have more questions.
If I were you I would open up my LLC in a state that is business friendly. CT will take you for a ride lol. Look into Delaware, 50% of all LLC are opened up there. You need to look at regulatory burdens and annual tax. For example, in California you have to pay $800 per year to have one.
Its a pretty easy process. There are 3-4 steps which can be completed in a week or less. The one part you will have to think about is where you list your business address and also what address you want to list as your registered agent. Your registered agent is where you will receive mail and all legal documentation for your LLC. There are multiple services in CT that allow you to use their address and they serve as your registered agent. Any mail that comes in will be scanned and sent to you via email.
Other than that, it's pretty easy. Good luck.
Do you really need an LLC?? just saying. Maybe do a deal or two in your name to see if you even want to be a real estate person. Plus if you buy in the name of the LLC, the bank is going to make you sign personally anyway. Now everyone knows that you are the owner of the LLC. Did that really give you any asset protection??
I bought in my own name for 15 years before deciding to incorporate. Never a lawsuit or even a threat of one. Well, one threat, but I talked with their attorney and he told his clients that they had no case immediately.
An LLC might be a great idea, or complete overkill. Always best to loop in a CPA and an attorney for good advice. The wrong entity creation could cause tremendous headaches and unnecessary fees down the line.
Best to spend a few bucks getting good advice.
I would have to respectfully disagree with @Rick Pozos . I would favor an LLC if I were going to place significant money into a property. Yes, you will have to sign personally, as owner of the LLC this will always be the case. *However*, there is a big difference. Should something adverse occur during ownership, only the LLC will be held liable, while your personal assets should be protected (provided you operated the LLC properly). Just my 2 cents.
LLC is set up, now need to open a business account. Should I go big bank (Chase, Wells Fargo, etc)? Or am I better of going with a smaller local bank? What are the pros and cons?
@Thomas J Mele - sorry for the delay was away on vacation. If you're looking for a bank to handle your team's LLC, then any is fine, although you may want to establish a banking relationship with a lending institution that services the type of deal you may want to handle on your own with your holding/operational LLC - i.e. buy and hold SFR/MF, fix and flip, or ground up construction. If it's particular for the JV you intend to form with other money partners, then this should definitely be shopped for the lender that will best service your intended deal type. You can always message me directly.
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