Pearland, TX · Member since 2017 · 7 posts · 1 vote
My wife and I are starting our venture in real estate investment. We are looking to create an LLC to place our property in....Have done some research and it seems fairly straight forward. Was looking for any advise on investors from TX that have created an LLC....What is the best way? Website like Legalzoom? Attorney? Or doing yourself?
We are currently in the process of creating a series LLC. It's a topic of great debate, but I say it's really not necessary to get started. A good umbrella policy is just fine for your first few properties.
Both are expensive but have great reputations. You may want to go with someone more local for your attorney. I personally don't trust the one size fits all sites like legal zoom.
I'm not from TX, but I'd suggest meeting with a CPA and/or attorney first to make sure you have all your ducks in a row. Business tax code is extremely complicated and it'd be best to consult the pros before making such an important decision. Just my 2 cents. Here in AZ you can do it yourself for the $50 filing fee, but I still met with a CPA not that long ago and was enlightened on how much he knew vs what I thought I knew lol.
We are currently in the process of creating a series LLC. It's a topic of great debate, but I say it's really not necessary to get started. A good umbrella policy is just fine for your first few properties.
Both are expensive but have great reputations. You may want to go with someone more local for your attorney. I personally don't trust the one size fits all sites like legal zoom.
I always suggest consulting with an attorney to create an LLC, it provides protection and anonymity which easily surpass the cost. Once you've met with an attorney and feel comfortable about the different elections and choices, you can form your own LLCs thereafter.
Agree with @Kris Wong that it may not be necessary, but for my self-directed IRA I did create an LLC in Texas last year (in a rush). I saw that the Texas SOS (secretary of state) self-service site was a little complex, so I used an online service for $49 (it was Incfile, but their prices seem to have gone up, I would find someone else).
It was super easy--I did have one issue, I specified the wrong option on 'member-managed' vs. 'manager-managed' (you'll want the former). But I got it corrected and got the LLC certificate within a week or so.
I also found generic Articles of Incorporation & an Operating Agreement online. I had signed them in the past as an investor in a friend's business, so I was comfortable with these: pretty much boilerplate language about specifying the ownership split, fiscal year, indicating how partners can exit, what happens if the LLC winds down, etc.
I would say if you can allocate a month to take your time with it, it is very easy to do with a $50-75 filing service.
-Charlie
PM me if you want a copy of the Articles of Incorporation & Operating Agreement I used for reference, but at your own legal risk, :)
I second @Kris Wong about Bradley Clark. He's who my partners and I use. If you want someone local to the Houston area, I'm sure Bradley can refer you to someone great.