Hello there BP Community! This place has been a wealth of info. I really appreciate this community and all the advice it has to offer! However, I need some clarity on a couple subjects.
I live in Kansas City, which is split between MO and KS. My wife and I recently moved to the KS side, but kept our MO house to use as a rental. We just set up an MO LLC for the rental on incfile.com. Now, I'm setting up the EIN number and its asking where my LLC is physically located. Would this be my registered agents address?
Thanks in advance!!
@Russ Vastano ...what state did you file for when you applied for your EIN or LLC articles of org?? That is first and foremost. Sounds like you selected MO and then moved to KS. If so...time to start over and have your lawyer draw up a KS LLC articles of organization and get another EIN.
@Dan Krupa ...I researched quite a bit before going down the LLC path. Every article and post I read said to get the LLC in the state where the property is, which in my case is MO. I was waiting on an answer to the above question before I applied for the EIN.
Yes this would be your registered agents address location they should provide you for where your office is
@Russ Vastano , yes then it would be in MO. Also, you understand you will probably pay your lawyer to be the agent - correct?
We have LLCs and I am a firm believer. However, if this is your first rental and you don't plan to purchase another property for a while, it isn't necessary. Get a million dollar umbrella policy coupled with a really good fire policy and great lease - you will be fine.
@Dan Krupa 's response is great... don't need LLC's if you get an umbrella for the one. If you have a friend or a buddy that owns rental properties and they have an LLC... you could look at theirs, read it and customize it for you. if you file yourself it shouldn't cost any more than $200 for tax ID and LLC... simple stuff.
I am not an attorney nor do I pretend to be one on Bigger Pockets - however from my own experiences ...
If you mostly invest in MO, keep your MO LLC, if you mostly invest in KS, well maybe a KS LLC.
However, you can invest in Kansas or Missouri or Utah all with a Missouri LLC, no problem. You just might have to register as a foreign company with the state. We buy mostly in MO, sometimes in KS, all with a MO LLC and have never been asked to register in KS. However I foreclosed on a note in Utah and to sell the house in UT I had to register as a foreign entity and then get a certificate of good standing, cost me about $300, and then let it lapse.
We have been buying and selling in Kansas City Metro - both states since 2000, and have done 100's of deals.
PLEASE PLEASE, consult with a KS or MO attorney versed in real estate transactions and small business and don't get your legal advice from the internet or from me.
Read some more of the responses.
For this particular LLC, your address should be the official legal mailing address, So if it is a MO LLC and you live in KS, the address should be a MO Registered agent as it does need to be a MO address, although, for most of your other state stuff, you can use a real address to you - However corporate stuff needs to have a legal in the state address.
As for copying your buddy's LLC - DON"T DO IT.
Your buddy might have copied his buddy or might have been practicing law via google. Or he might have consulted with an attorney who took into account all the factors within the buddy's business to set up an LLC that works specifically for what said buddy is doing and might not be appropriate for what you are doing.
Every business is different in what they are going to do with investment property, other income from outside sources, end results they are looking for and legal entities need to take this into account or you might be paying way to much in taxes and not set up correctly for asset protection. And there is a lot more that goes into the asset protection than a piece of paper that says you are a legal entity, you have THINGS you have to do, to support that separate legal entity or the asset protection goes down the toilet and you would have been better off just buying in your own name and ensuring the heck out of the property as was initially suggested.
I would find a good small business lawyer in Kansas City and discuss YOUR situation and YOUR business and have him help you get set up correctly.
Some names I would google: Julie Anderson, David Nachman, Rick Davis - they could all point you in the right direction,
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
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