Forming an LLC in NY

5 Replies

Hello everyone, I have two questions on how to form an LLC. My first questions is after someone has already form an LLC through the state, what happens next? I am currently in NY so I know the process by just going online, picking a name then filling out the article of organization and doing the publication requirement and etc. so after everything is done with the state, what is next? Do I need LLC insurance or how does one get protection? Is it once you for an LLC, you dont need to pay or do anything else afterwards?

Second question is how do other investors who live in NY or another state, forms thier LLC with Nevada protection but yet have it form here? I know Nevada and Ohio are the biggest LLC protector but me living in NY how do i do that process?

Some of my NY investors have done so but wont tell how, competition is high here so i understand some secrets are not to be share.

I would recommend that you buy an hour of your real estate lawyer's time and have him or her give you an overview of the benefits and responsibilities of entity ownership and then walk you through the answers to your specific questions. Good luck.

Are lawyers the only ones that could assist with this? I have heard of accountants providing service for this as well.

typo error, I meant to say Nevada and Wyoming have the best protection and not Ohio.

FYI,

Publications in New York can be very pricey.  In NY county, it could run over a thousand dollars.  

Now that you have a NY LLC, people do form foreign entities in different states such as WY, NV as you mentioned. You'll need to consult an accountant on how that would help you.

Hope this helps

Yooch

@Account Closed

An LLC can be part of an overall asset protection scheme. In real estate, it's usually used in conjunction with insurance and leverage. Filing the registration forms is not too hard, but preparing a proper operating agreement takes some skill and expertise. Some accountants and CPAs will file the registration forms for you, but they are not supposed to do this as it's considered the unlicensed practice of law. More importantly, unless the CPA is also an attorney, he or she won't be qualified to counsel you as to its benefits beyond the tax implications.

As for registering an out of state LLC, it can be done but it's a little more complicated. You need to file the registration with the state you choose. You'll then need a physical presence in that state or a registered agent in that state who can receive service of process for the company. You'll also need to register your foreign LLC to do business in your home state too.

There's obviously a lot more nuance and detail to this but that should give you a good starting point for further research.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here