Starting an LLC

6 Replies

Hello, Im Fannie and Im a newbie REI. I want to start Wholesaling and also get Rentals to start building my portfolio. With that said, I have the financing but not the LLC, I want to go about it the right way and make sure I start it correctly. Ive seen websites offering it and also attoneys offices willing to do it and be a registered agent. I just want to know if I should go the online route or attoney route. Thank you for your input and looking forward to building relationships and. networks thru this awesome site!

Morning Fannie,

Welcome to BP and to the world of real estate investing, I wish you all the best. 

For wholesaling you really do not need the LLC. If you are buying your first rental investment with all cash then I would say yes get a llc and do it thur the lawyer will cost you a little more but this way it is done to your state codes and you have someone to fall back on in the future if there every is a problem. Remember it is not your lawyers job to keep your llc up dated, it's yours. He will just do it for you. You can use your address or his/hers, when you use his/hers all notices, mail etc will go to him/her which then will cost you more, ask how much> Having the LLC at your address is fine just makes it easier for others to find you. The LLC acts as a type of insurance for your protection. Some investors just buy more Liability insurance to cover any possible lawsuits, I personally think this is a waste $$. Good luck Keep us all posted on your progress.

Thanks Sydney for you feedback. The financing only allows to LLC entity not personal so that is why I was going to get one started. And it wasn't going to cost too much but I will surely ask all the right questions beforehand. Thanks again!

@Fannie Hood The easiest way to start a LLC is to go to:

https://bsd.sos.mo.gov/loginwelcome.aspx?lobID=1

and just follow the steps and pay the 50 dollars. As already stated it is only needed if you will be holding a property, to protect your other assets from a lawsuit. It is very easy to create, you go to the above website, create a account, find a name for your llc that has not been taken already, and then follow the steps to complete the process. Use yourself as the member and organizer of the LLC. Hope that helps.

Thanks so much Ryan!!!

Hey @Ryan Billingsley   , another question.....I went to the site and did this but do I have to do something with IRS for a Tax ID or something? Thanks!

After you file your LLC documents and they are approved, you can easily get your tax id through the IRS website. It's a fairly straight forward and simple process.

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