Setting up an LLC

12 Replies

Hi All, 

I am planning to setup an LLC in NC. My goal is mainly to buy rental properties and do rehabs. Any tips/advise for someone setting up a business for the first time? Also, I am debating if I should use LegalZoom or should I go through a local Accountant?

Cheers,
Saurin. 

You can do it yourself on the Sec of States website in about 15mins and save paying anybody to do it. You will get the exact same LLC.

Its your LLC's Operating Agreement that you should probably have a professional look over for you.

I don't have any personal experience yet. But check out podcast 196 featuring Brandon Hall. He's a CPA that specializes in real estate and does an amazing job explaining LLCs along with many other things. He runs an online business that caters to real estate investors and I plan on using him when I set up my LLC .

Thank you @Ronan M. I never thought about it! Is it mandatory to have Operating Agreement? I've got mixed feedback on this. At least for the first year, I plan to be the only owner of the LLC (no partners or employees).

Thanks @Christopher Shelby . I will surely check out the podcast you recommended. Good luck with your setup and business endeavors!

@Saurin Pandya North Carolina does not require an SMLLC (single member LLC) to have an operating agreement. However, even though an SMLLC has just one member, an operating agreement is highly recommended. An SMLLC operating agreement does not need to be filed with the state. Having an agreement in place can help with liability protection by separating your business from you personally. It also can be useful with lenders and other businesses when entering into business transactions.

It is fairly easy in NC to set up an LLC, you can get the forms on the secretary of states website. I do believe you have to turn them in in person, but this may have changed since I've done it last. No need to pay legal zoom, they also slow down the process quite a bit.

@Saurin Pandya

Creating your own OA is your chance to the set the rules and regulations of your LLC.

In the event of a dispute or lawsuit if you did not set out these governing guidelines in your OA then the courts revert back to standard state laws. Which may not be as favorable to you as you setting your own.

In NC you can file you OA online. It took me 48 hrs to obtain my LLC.

Download the OA from the Secretary of state then upload and pay the fee. DONE

I was discussing about my LLC plans with couple of like minded colleagues, who happen to be interested Real Estate. They highly recommend me to setup a C-Corp rather than an LLC since I plan on investing in rental properties. I had done my research earlier and had got mixed feedback. Can anyone shed some light on this topic? As I had mentioned earlier, I am taking baby steps and will start with 1-2 rental properties in the first year and gradually start doing rehabs. Also, I don't plan to have any partners or employees for the first 2 years. Any thoughts/feedback? Thanks.

Originally posted by @Saurin Pandya :

I was discussing about my LLC plans with couple of like minded colleagues, who happen to be interested Real Estate. They highly recommend me to setup a C-Corp rather than an LLC since I plan on investing in rental properties. I had done my research earlier and had got mixed feedback. Can anyone shed some light on this topic? As I had mentioned earlier, I am taking baby steps and will start with 1-2 rental properties in the first year and gradually start doing rehabs. Also, I don't plan to have any partners or employees for the first 2 years. Any thoughts/feedback? Thanks.

Year later. Did you go the C-corp or LLC?

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