Forming LLC's with First 2 Properties

5 Replies

Hi BiggerPocket peeps,

I want to form LLC's for my first 2 properties as I'm looking to acquire my third. I have one in OKC, one in Atlanta and live in Jersey City.


Where should I find my attorney or CPA to form my LLC's?

Should cost of the different regions be taken into account?

What should I look for in an attorney or CPA to do the job?

Any referals will be appreciated as well.

Thanks,

Wallace

Setting up an LLC is pretty straightforward (as long as its set up and maintained properly). You may need to register the LLC with a certain state so it could help to have separate LLCs for each state you're investing in. I'd reach out to some investors in each of those states (through BP) for attorney recommendations for LLCs. They'd be the best contacts. Goodluck

I've been down this road and am still confused. You'll get many different answers, ask 7 attorneys and get 7 answers. I live in CA, my LLC is formed in TX, and the properties are in MO & WA. I have no idea if this is the right way to go. I've read a lot about it, and still don't know.

Some states charge a high annual fee to register your LLC, TX is pretty cheap so mine is there, as well as the attorney I used.  Many people say the LLC should be formed in the state that the properties are in, IDK.  

Search BP, you'll find thousands of posts on this topic, nothing I've come across provides a clear answer.

Best of luck.

@Wallace Zhen , you can open an LLC yourself or with an attorney, not a CPA. I used to open my own LLCs until I realized that I was still leaving trace to my name. First, you do not want to name your LLC with your name, like "Zhen LLC" (that's what I did with my first one #faceplam). You basically give litigators your name to go after. Second, and this is where you need an attorney, you don't want to have your name on the certificate of resolution, you want to have your attorney's name. This is because litigators can go to public records look up your LLC and see your name there.

Here is a video with more details on how to properly set it up. This is my attorney who I use to set up my LLCs.

https://youtu.be/h8DHEQ4BkF8


  

in oklahoma if you hold the property in your llc it must be registered in oklahoma, otherwise they will not allow you to file an eviction on your tenant and a few other details.  just something to keep in mind.