Hello Everyone my name is Tania and I am an new real estate investor from NY. I am a single mother of a wonderful 7 year old. I was recently laid off from my job and while I search for another job I would like to get into real estate. I have a few questions for anyone in New York or anyone that knows NY laws. I would like to know if there is anyone wholesaling in NY? Did you have to set up your LLC prior to starting? Can you explain the process for New York as I hear it is different from most states? I am completely confused and any information would be helpful. Thanks in advance and have a wonderful evening.
@Tania Savory You do not HAVE to have an LLC before you start, it just makes it easier to separate expenses from the very beginning if you do. Since 2018 is about to start, it may be a good idea for you to do so. However, NY has some hefty fees if I remember, so you should consult with a tax accountant first. If you need someone, I can do an intro via PM.
Also, go to your local REIA meetups...Meetup.com is a good place to search.
Thank You @Shawn Ward for your response. Yes I would love to speak to a tax accountant. Please PM an introduction. Thank you very much. I want to make sure I’m doing things correctly.
Thank you @Shawn Ward for your response. I would love to connect with a tax accountant. Please PM the introductions. Thank you very much for your assistance.
I am sorry to hear that you were let you.
You do not need to create an LLC to start a wholesaling business.
Creating a LLC in New York can be expensive.
You need to do the following to create an LLC in New York
1) File articles of organization with New York = $200
2) Prepare Operating Agreement = Depends; it can be $0 if you do it yourself or you need to seek an attorney to create one
3) Publication requirement = you need to publish in 2 separate newspaper for 6 weeks information about your LLC. Depending on where your office location will be(Manhattan being the highest) this can add a couple hundred to a thousand dollar in costs.
4) file an affidavit with New York that you completed the publication requirement = $50
The above does not include any costs you would pay to a website, accountant or lawyer to set it up on your behalf.
Thank you for your response
@Basit Siddiqi . So I don't need an LLC to start? Really can you explain further please? That's great to know as I thought it was a necessity. Since the process is so lengthy and expensive in NY would it be advisable to open in a different state or to start without it?
I'm in NY as well and an NYC LLC is costly. More so the publishing requirement as Basit stated above. I use a Nassau county address just to avoid the NYC publishing costs.
You don't need an LLC to wholesale and especially when you're just starting out. Don't give yourself the unnecessary expense. If you're planning to operate only in NY I would not incorporate in another state. You may be required to file a Foreign Entity Registration (I believe that's what it's called) in NY anyway.
There is a really great website that walks you right through setting up an LLC, getting it published in Albany County where it's really cheap and then changing the County after you get your Affidavit of Publication accepted.
You will save THOUSANDs because of the great advice by a real Attorney who created this website. Please thank him if you do find it useful because we need more of these kinds of education available to us rather than the ultra wealthy.
Here is the website: LLC University
It's really great and I am almost finished with mine. I'm just about to get the publication started before filing to transfer the LLC to Kings County in Brooklyn from Albany County.
Hopefully this helps. It certainly helped me.
Thanks so much @Abena
@Abena Cannady . I live in Long Island, are you saying I won’t have to go thru the process if I set it up on Long Island? That would be even better. Thank you so much for the information.
I hope to purchase out of state as well so I was trying to get as much information as possible. Thank you.
Thank you @Llewelyn A. I appreciate the information. Will definitely check out the website. Thanks again.
@Llewelyn A. Thanks. I never considered changing the county after publication. That's a great idea.
@Tania Savory The process is the same in LI, the cost of publishing is what is cheaper. There's a lot of differing opinions on where to form your LLC if you are investing in multiple states. For me, I opted to form different LLCs in each state. I will do series LLCs where possible when I get to that stage. It really depends on what your goals are for your business. You have to consider liability, financing, taxes, estate planning, etc. But I will say, don't wait on figuring all that out before you get started. You can start in your name while you try to figure out which setup will work out best for you.
Thanks everyone for the wonderful advice. I appreciate all the support.
Thank you @Justin
@Justin K. I appreciate everyone's feedback. I will definitely look into LLC University and Albany county as my location. I have a lot of video watching and reading to do. Thanks again to everyone.