Involved In Real Estate · Paramus, NJ · Member since 2009 · 95 posts · 40 votes
I have just completed my real estate broker course and am waiting to take the state exam. I already setup an LLC a couple of years ago to buy and flip properties. If I do set up my own real estate brokerage office as opposed to working with a non-licensed partner, will it be ok to use my existing LLC to buy sell and broker properties, or do you recommend setting up a new separate LLC? Thanks in advance for your suggestions.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
14y
That's definitely something you want to talk to a qualified attorney about. Having said that, I would not be mixing those businesses into the same LLC. I wouldn't want liability crossing over into the brokerage business.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
14y
That's definitely something you want to talk to a qualified attorney about. Having said that, I would not be mixing those businesses into the same LLC. I wouldn't want liability crossing over into the brokerage business.
Real Estate Attorney · Cleveland, OH · Member since 2011 · 140 posts · 89 votes
14y
Brian's suggesting of seeking a professional in your area is really the best answer.
There are too many variables and not enough information to really answer your question. There are so many options with structuring business entities for liability purposes, for tax purposes; and, YOU (if you get your license) may also have to worry about professional service and ethical restrictions, etc....
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
14y
Easy response. ALWAYS a separate entity. And depending upon the state you are located in the Series LLC can be your friend. I'm in a Series LLC friendly state though.
Real Estate Attorney · Cleveland, OH · Member since 2011 · 140 posts · 89 votes
14y
SERIES LLC -
Didn't realize IL was a Series LLC state. Nevada is a VERY good state for business entities - but then again, if you have business entities that own real estate, it is usually best to have the business entity formed in the state in which the real estate is located.
Anyway - A Series LLC is a way to form "multiple" LLCs under a "parent" LLC, yet it is still only ONE business entity for state law purposes. The nice thing about it is you separate the liability of one from the others. You generally need to have a separate business bank account for each LLC in the Series, and there are a few other things you need to do to keep the liability separation you really want - but overall it saves on administrative red tape and filing fees....
Accountant · Hyattsville, MD · Member since 2011 · 120 posts · 44 votes
14y
This is ok to maintain history as long as you originally set up the LLC right by not using your home address or yourself as the resident agent. These are asset protection busters. You would only need to update your operating agreement for the new brokerage office.