How Do I Create An LLC And Should I Hire Someone To Help Me?

Question

I know an LLC is not necessary to invest in rental properties, but I’ve decided this would be a better option for me in the long run. Is it easy to creat an LLC on your own, or would it be wiser to hire someone to assist me? If it’s easy, I can certainly do it. But if I’m going to be set up better in the long run if I enlist help, I want to do that. I ultimately want an umbrella to keep my assets under and I’d rather set this up now from the start than have to do it later. What do you all think? I’m in Michigan and I’m not sure of the LLC creation process.

Jonathan Greene · Answer

For your purposes, you don't need one now at all. It takes 5-15 minutes on any state site to set up on your own, without an operating agreement and articles which you will only need later.

If you are setting up a single-member (just you), you don't need help and setting it up now for rental properties only makes sense if you have cash. You can't buy rental properties in an LLC unless the LLC has two years of tax returns to show and you can't transfer from personal to an LLC on a residential or the loan could be called.

Drew Sygit · Answer

@Erica Wilson challenges with LLCs:

1) Setting it up correctly.---Many DIYers enter their own name as LLC agent and their home address. Defeats any chance at anonymity! Using an attorney, CPA or a 3rd party as agent is smarter.

2) Having an Operating Agreement---Without one, you don't have a viable LLC and highly likely a judge will set it aside.

3) Buying a property in your name to get a FNMA/FHA/VA mortgage, then transferring the property to an LLC via QCD.
---Again, defeats the anonymity of an LLC! You're better off just getting better insurance.
---DSRC loans avoid this issue.

4) Can't represent your LLC in court---You'll need to hire an attorney for evictions, Security deposit disputes, etc.

If you need a business bank account, you can open one with a DBA, which you can get at the county.

Otis Gathing · Answer

You can pay someone on fiverr to create a LLC and get a EIN by going on the IRS website.

Account Closed · Answer

I would checkout legal zoom or zen business before meeting with any of these lawyers or accountants to do it. Often times you don't need all the bells and whistles they are more then happy to set up for you (and charge you along the way)

How Do I Create An LLC And Should I Hire Someone To Help Me?

How Do I Create An LLC And Should I Hire Someone To Help Me?

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