Rental Property Investor · Member since 2018 · 7 posts · 5 votes
BP Community - I'm looking into creating an LLC for investments across several states. It seems there are benefits to incorporating in Nevada. Looking through the BP posts, there hasn't been too much lately on Nevada Corporate Headquarters (NCH) and older posts are not very positive. Anyone have recent experience with NCH in setting up an LLC or estate planning? Please reply or private message me with any feedback. Thanks!
Thanks for sharing. I don’t have all the answers (and never will). Privacy for me is mostly about the general population, my assets, and my assets passed upon my death. I have no intention or hiding from creditors/ gov agencies. I appreciate your feedback.
The primary benefit of a Nevada entity is to the company that sell it to you. The main advantage to Nevada is the privacy; which goes out the window when you have to register your company in another state that it does business in.
Thanks Ned - that is a good point I hadn't thought about. Christopher, we are exploring our options for having our LLC registered in Nevada. I would be interested in hearing what you heard about NCH. Would you mind sharing it?
I did form an LLC through NCH. I will close on my properties in private name first (lender requirement). Was then planning to go the land trust route. There is a lot of debate on the best entity structure - unique LLCs for each property, one LLC with land trusts, etc. I'm still researching and have yet to finalize. I'm just happy I took action after years of reading and analyzing. Will now focus on what is best for my situation. Will be great to hear the route you go!
@Stephanie F. I am not an attorney so I may be a bit off base here.
GENERALLY, When you register your LLC in your own state or as a foreign LLC in a different state, the owners are not listed. The company has a "resident agent" which is the person to serve when someone needs to give service to the company. The resident agent does not have to be an owner of the company. This is how it works in Maryland.
So you can get some privacy simply by using a resident agent other than a company member. However that will not stop or even slow down legal action. Who is going to guarantee any mortgages? There is your name on the mortgage right in the public records! Unless and until you get a large company with lots of employees, the people you work with are going to know you are the owner.
Yes you can construct complicated business structures to keep your name more private, but that complexity has a cost. The cost for administration of that structure in both dollars and your time. Also the more complex a structure the more risk that an important legal notice does not reach you We have had that happen more than once.
You don't even want privacy. You are a business and you want to build your network. You can't have a big network and privacy at the same time.
Thanks for sharing. I don’t have all the answers (and never will). Privacy for me is mostly about the general population, my assets, and my assets passed upon my death. I have no intention or hiding from creditors/ gov agencies. I appreciate your feedback.
@ Jonathan Parnell. I set up an LLC and have each property under a privacy land trust. Send me a message and would be happy to connect to share details.
I have talked with different companies in relation to asset protection. Each company has different approaches on this. Looks like setting up a LLC and having each property under a privacy land trust is a good way to go. Just wondering if there are any cons of this approach? Is NCH a good company to work with? Thanks.
I have talked with different companies in relation to asset protection. Each company has different approaches on this. Looks like setting up a LLC and having each property under a privacy land trust is a good way to go. Just wondering if there are any cons of this approach? Is NCH a good company to work with? Thanks.
About a week ago, I had a free consultation call with NCH. The gentlemen seemed super knowledgeable but I was also a bit overwhelmed because he kept going on tangents about different things. My goal is to buy my first deal by the end of 2021 in the Detroit Metro area (preferably outside the ring of Detroit proper) and am deciding whether setting up an LLC is right for me or not. I'm still on the fence as I've also read that just having a good umbrella policy is good enough. Any feedback is appreciated.
@Savanna Daniels I think you can buy a house before setting up a LLC, because LLC costs money. When you purchase a house, make sure you get a good insurance coverage. Then when you have one or more houses, you can set up a LLC or other types of assets protection.
@Jonathan Chan other approach will be each house has its own LLC, and then there is a holding LLC in Nevada. I think it will cost a lot of money.
Yea, that's the route I'm going. Each of the paid off houses are going into their own LLCs. I'm not doing a above them though. That's probably going to happen further down the road.
@Account Closed Thanks for your info. I just got off the phone with David at NCH and I liked what I heard and plan on moving forward with them. They did also pitch me on the Business Credit Accelerator program and I was wondering if you did that. I get that they help you build up your business credit quickly up to 50-80k in one year but do I really need that much of a credit? Just curious as to how much beneficial it will be to take that product which costs close to $2000.