Setting up Note Investing Business

[Jared W Smith]

Hello All, I am looking for advice on setting up my Note Investing Business. I have another business but it's unrelated to Real Estate or Investing (Architecture Professional LLC; PLLC) which had several additional steps due to the type.

Am I to assume for Note Investing, it's a regular LLC in my home state? Does it matter what states the mortgage notes are in? After creating LLC, I will get EIN, set up bank account. Am I missing anything? What about the name? Should I include pertaining wording in it like "Investments" or "Lending" or "Mortage Notes"?

Any help or pointing in the right direction is appreciated. Thank you

Jared Smith, RA  -  Principal Architect and Owner Architect Owl PLLC  

[Andy Mirza]

Lots of great advice here. You don't necessarily have to create or form the LLC in the state that you reside in. Based on the advice of our attorney, we formed our management LLC in the state of DE and registered it as a foreign LLC in UT, where my business partner is located. DE has different laws pertaining to LLCs and how they are treated, which is a huge reason why so many people form their entities there.

UT was a lot cheaper to register a foreign LLC than my state of CA.