So I'm curious what other Massachusetts investors have done with their LLC's. I was recently told by our lawyer that we should setup a different LLC for each group of investors. So for a little background were buying a new property and two other partners are involved. One of which we already own a property with and the other it will be our first property together. We plan on buying 2-3 properties a year and each property we could have new investors so it could quickly snowball to a ridiculous amount of LLC's and way to much money going to the state for each one....
There has to be a better way for us to do this. I've heard Series LLCs are not recognized by the state of mass so do we just bite the bullet and setup one LLC for each property or is there a better way out there?
Any input would be greatly appreciated, Thanks!
Also, if anyone has any rockstar RE lawyers they recommend that would be great too!
@Rob L. I'm not sure of any other way, I'm sure people could chime in and offer their two cents but if you're doing two to three separate properties a year with different investors, it just makes sense to create an LLC for each, although maybe a bit more expensive. Just the right way to do things. Don't do each one through a lawyer, maybe the first one to get an understanding but the creation of an LLC is pretty straight forward, simple. They upcharge for free services like applying for an EIN number. I got a few quotes from lawyers in MA and each was over $1100.00 including the state filing fee.
After some research, about 5 minutes of my time instead of paying $1100.00 I paid $603.00 through setting up through mycorporation. The most important thing is the operating agreement here. Again, I would sit down with a lawyer just for the Operating Agreement pay a little bit, as it's the most important piece of paper in a Multi-Member LLC, get a firm understanding of the language and that's it. From there on out, make your own and never be charged for it again.
Good luck. I'll be interested to see if anyone else chimes in here but from what I understand, this is the best, safest way to do things. What's a few hundred bucks extra if your making thousands.
Kyle Cabral, Real Estate Agent in MA (#009535674)
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