Hi BP community!
Where is a good resource to find information about LLCs? What books/video/people should I look into. I'm considering creating an LLC with a family member and have lots of questions.
I would really like to get clarification around this point. I've heard of some say it's more difficult to get loans if you are applying as an LLC. Is this the case?
Commercial lending is more difficult and expensive. Also, tax implications could be significant. Talk to a CPA about the tax implications and then talk to a lawyer about structure that doesn't cost you an extra round of taxes.
Nolo Press releases some great legal guidebooks for non-lawyers. I am sure they must have an LLC overview treatise.
You can google LLC information and start fishing through the links and pick up whatever information you need. I have several LLC's and I would never invest with them. I feel as though the money is much much easier to get with an LLC. How can you get a construction loan to renovate a property in your personal name? An attorney would have all the info you need on LLC and accountant would have the tax advantages of using an LLC. I believe an LLC would open up more doors for you. Especially if your investing with family. You definitely want to protect yourselves and structure the LLC accordingly so everyone knows there roles. You could also do a JV agreement. That's another option. You just have to do your research. Start spending your time reading articles books you tube videos about REI and any other questions you have. The more you prepare and learn the better you'll be. Experience is the best teacher though. So get your info then get out there and do a deal!
Google, CPA (tax wise), & lawyer (legality). It doesn't have to be that complicated, but for a good background, you can talk to these folks & search the hundreds of threads on LLC's on BP as well, especially real estate specific.
I wouldn't necessarily say it's harder to get a loan via an LLC, because if you're brand new, you're almost certainly going to have to personally guarantee the loan anyways. Getting a loan w/o personal name on there is probably out of the question if you've got a short track record, so it really doesn't matter and is irrelevant from the standpoint of getting a loan. It is more vital from the legal entity, tax, partners, professionalism, etc. standpoint.
Check out the you tube series by @Ronald Rohde . He has a nice webinar on this very topic.
Start your own corporation by Garrett Sutton is a great read. Did a great job explaining the various ways to incorporate to better equip anyone when meeting with their CPA.
@Daniel Hyman I checked out his YouTube channel and look like quite a few of his videos will be helpful. Thanks Daniel!
@Griffin Coxen Awesome I just found it on Amazon. It looks like he has another book on LLCs and Limited Partnerships that would be a good read for me too. Thank you!
@Todd Rasmussen Thanks for the advice Todd. I have not started investing yet so I'm weighing my options. I'm thinking of starting with consumer loans and switching to an LLC a few doors in.
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