Specialist · Providence, RI · Member since 2017 · 34 posts · 12 votes
I am looking to form an LLC in Florida for my new real estate business. I do not live in the State, but I have a close family member who does. Since my job requires me to travel often, I would like this person to be able to make purchases and sales on behalf of my LLC. I read that a good option is setting up a delegation of authority. However, I have no idea if this is valid. Anyone in Bigger Pockets land have more experience with delegations of authority? Do you need a lawyer to set one up? Will banks and title companies recognize it?
I am looking to form an LLC in Florida for my new real estate business. I do not live in the State, but I have a close family member who does. Since my job requires me to travel often, I would like this person to be able to make purchases and sales on behalf of my LLC. I read that a good option is setting up a delegation of authority. However, I have no idea if this is valid. Anyone in Bigger Pockets land have more experience with delegations of authority? Do you need a lawyer to set one up? Will banks and title companies recognize it?
I am looking to form an LLC in Florida for my new real estate business. I do not live in the State, but I have a close family member who does. Since my job requires me to travel often, I would like this person to be able to make purchases and sales on behalf of my LLC. I read that a good option is setting up a delegation of authority. However, I have no idea if this is valid. Anyone in Bigger Pockets land have more experience with delegations of authority? Do you need a lawyer to set one up? Will banks and title companies recognize it?
Are you the managing member?
Yes or I will be. The relative will be the designated representative in Florida. I have NOT formed the LLC yet and was kicking around the idea of making them a manager too. However, I would like to file my taxes under schedule C and didn't know if having a non-member manager would complicate things. If the delegation is sufficient, I prefer to go that route.
I am looking to form an LLC in Florida for my new real estate business. I do not live in the State, but I have a close family member who does. Since my job requires me to travel often, I would like this person to be able to make purchases and sales on behalf of my LLC. I read that a good option is setting up a delegation of authority. However, I have no idea if this is valid. Anyone in Bigger Pockets land have more experience with delegations of authority? Do you need a lawyer to set one up? Will banks and title companies recognize it?
Are you the managing member?
Yes or I will be. The relative will be the designated representative in Florida. I have NOT formed the LLC yet and was kicking around the idea of making them a manager too. However, I would like to file my taxes under schedule C and didn't know if having a non-member manager would complicate things. If the delegation is sufficient, I prefer to go that route.
You potentially could make them a manager, and file using your SS. Downfall is, if they screw things up...you are caught up in it. You COULD be the managing member, have them find the properties, etc...and you be the signer.