Hello Everyone, hope day is going great for everyone !
I like to ask a question: "Should I hire a real estate attorney to open LLC for real estate investment or Can I do it by myself ? or Should I use online services to open LLC?
I'm early level investor and I am not looking for real solid business entity right now. May be down the line. I need some basic structure to protect my investment at reasonable price. Thanks,
Welcome to BiggerPockets. What are you looking to accomplish with the LLC? Asset protection? What kind of investing are you looking to do, and why do you think you need to form an LLC? How are you going to finance your purchases with your LLC? Do you know which lenders would lend on LLC, and which don't?
I have done both. For the last 5 apartment building purchases, my partner and I have formed our LLCs on-line through Rocket Lawyer. The fee was between $299-$349. Each of us also have properties under our sole names. It all comes down to what are you trying to accomplish.
In my case I started this year. In the beginning, I made my offers under my name, but after I realized it was better to form my own LLC. I met a couple of investors with more experience than me in a field trip, and they were using their own LLC.
I am a lawyer in my country so I am doing all the paperwork by myself. I didn't know you could form a company for the price that @Minh Le mentions. It is a good option!
If you decide to make all the paperwork a good start might be to visit the web of the Secretary of State in California ( http://www.sos.ca.gov/). Also have in mind the tax in CA for forming a LLC is $800.
I own 2 LLCs in California and I can tell you the process is very easy and affordable. I would definitely not hire a lawyer or use any service. Simply download the single page form LLC-1 and send it in with the $70 filing fee and you're done! Within something like 60 days, you'll also need to file form LLC-12. Again, single page and something like $20 fee. You'll need to file the LLC-12 on an annual basis. But that's it; it's that simple.
If you really want to learn about it in depth before doing it, check out Nolo books. They have an entire book dedicated to forming LLCs in California. If you're in the East Bay, drop by their headquarters in Berkeley to peruse all their titles.
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