Is it standard to have your LLC open prior to purchasing a property? When I make offers, am I making an offer representing my LLC or is that detail irrelevant as I would just put the LLC down on the purchase agreement as the buyer? I feel like I have a lot of pieces to the puzzle down, but I'm missing a few corner pieces to feel confident about investing.
Bonus Question: If I live in state A and want to purchase a property in state B, I would still want an LLC in state A correct? Thank you!
Hi Tim, @Trevor Marvin lives in CA where he will pay $854 dollars a year to have an LLC. This will outweigh the cost of transferring to an LLC which he could do via quitclaim for a couple hundred dollars.
On a conventional loan, you can transfer ownership to an LLC you control.
In regard to having the property in an LLC. Nothing prevents a lawsuit from being brought against you personally. If you personally are making the management decisions regarding the investment property, or personally guarantee loans of the LLC, all of the assets you think are protected are exposed anyways. Corporate entities do not offer significant protection until you have employees acting on your behalf as agents of the corporate entity and the business can obtain financing without personal guarantees. I had the same assumptions about LLC's as you until we talked with a couple civil litigators in depth about asset protection.