Real Estate Investor · Kalamazoo, MI · Member since 2015 · 120 posts · 37 votes
I have been looking into registering my Doing Business As and I found numerous ways to do it only and various prices. Do you guys have any advise on how to do it best? Asset and personal separation from my business is a big deal to me.
@Jean-francois Ndomb, many attorneys out here offer a "free" 30 minute consult for new clients. Get your questions down and engage one or more for these free consults if available in your area.
Its better to get professional opinions rather than be hit with a 5-6 figure amount for tax or liability.
That's a pretty broad question and probably depends on your state. That being said, my experience is the vast majority of REIs use an LLC for the purpose of seperation.
Jean-francois Ndomb what kind of REI activity are you looking to perform in this entity?
Is flipping, S-Corp is best for most. LLC will give you most flexibility.
Consult an attorney and CPA.
Go Broncos!
@Jacob Sampson I live in Michigan and from what i have read LLC seems to provide a lot of flexibility indeed @Percy N. I just am not looking forward to spend money on an attorney. I guess a consult can't hurt for the greater good. Thanks guys.
@Jean-francois Ndomb, many attorneys out here offer a "free" 30 minute consult for new clients. Get your questions down and engage one or more for these free consults if available in your area.
Its better to get professional opinions rather than be hit with a 5-6 figure amount for tax or liability.
Mr. Percy has it absolutely correct. You cannot afford to not consult with an attorney on this matter. I realize that it is hard to stomach the startup costs of listening to an attorney talk about your business, but it will definitely save you money in the long run. Failure to have a good attorney help you with your business set up could mean that anyone who decides to sue you, and they will, could get at your personal savings or your other personal assets. You risk far too much by doing this kind of thing DIY.
@Percy N. and @Matthew Kreitzer, I will take my behind to an attorney this week and get it done. Can't use shortcuts with some matters like this. Thanks again.
@Jean-francois Ndomb My firm handles LLC formation in Michigan, and from experience I can tell you it shouldn't be too expensive. Much more than $500 (including filing fees) and they're taking you for a ride, much less than $500 and you get what you pay for. If you want a separation of liability, an LLC is going to be your best and cheapest option to achieve that.
@Percy N. and @Matthew Kreitzer, I will take my behind to an attorney this week and get it done. Can't use shortcuts with some matters like this. Thanks again.
Didn't see you already responded before I posted my comment, sorry for the attorney pile on.
The actual set up of an LLC in MI is very inexpensive - $50 to the state and $25 a year to renew. The paperwork is pretty simple. Please let us know how the conversation goes and how you proceed.