Best Practices for Creating a LLC
Hello BP Members,
I am a investor located in Chicago and am looking into buying a multifamily property in North West Indiana (NWI) - Hammond. I plan to buy the property under an LLC and not my personal name via a commercial loan.
In relation to forming the LLC in NWI i understand the following:
1) Given that i am not a resident of Indiana, i will have to identify a registered agent and use the address provided to create the LLC.
2) On discussing with registered agent i understand that the address they provide can only with Secretary of state. They strictly indicated that address cannot be used for any other purpose - including EIN, IRS and bank purposes.
3) As such for creating an EIN, property tax and bank account purposes - i will need to use my personal/primary residential address in Chicago.
The question i had was - is this common to have personal address for LLCs for EIN, IRS and bank purposes? Doesn't this defeat the entire purpose of creating an LLC to remain independent and keep personal assets/information away? How are other out of state investors handling this and whether there are best practices related to LLC formation that i should be aware about.
As always - thanks in advance for all help and assistance.
Regards,
Tushar Shah, CFA