Looking for to start an LLC for my SFR in Illinois. Dekalb county
Any good recommendations?
@Jorge Villarejo quite a confusing statement. Here's a book to help you open your own, or I suggest consulting a legal professional.
Anyone can go the the Illinois Secretary of State's website and fill out the "Articles of Organization" for an LLC. That in and of itself is a no brainer. What is more important is creating the proper operating agreement. and following what many refer to as the corporate proprieties.
Mark Kohler, William Bronchick and Lee Phillips are attorneys and national speakers. Kohler is also a CPA. Each of them sells an operating agreement that can be tailored to your needs.
The second most important item is determining if you will be a single member LLC taxed on your personal income tax return or something else. You can also set up a husband and wife LLC operating agreement and accomplish the same thing. The other option is a multimember LLC.
A multi-member LLC can be taxed as a Partnership, S-Corp or a Corporation. The IRS really doesn't care as long as they receive the correct income tax return filed ON TIME and the tax is paid. This is a separate tax return from your personal 1040s. They are form 1065, 1120-S or 1120 respectively. You will need a professional income tax preparer for these forms. HINT. The first income tax return is due by MARCH 15th in the year following your entity creation. Form your LLC on December 31st 2021 and the return is due March 15th 2022, even if you never made a dime. The late fee is $195.00 per month per member/partner/shareholder. Three partners filing a return 6 months late is 3 x $195.00 x 6 = $3,5010 late filing fee.
I am not an attorney and do not play one on television. I am a Registered Tax Return Preparer with the IRS. Too many people show up on my door after paying over $20,000 to go to a seminar and another $6,000 to get a "Magic Bullet" LLC. They spent all their money on a get rich quick guru and now have nothing left to invest. Een worse they were never told when to file their tax return. Avoid that like the plague.
Join your local REIA and learn at your own pace. The cost is anywhere from $100 to $500.00 a year depending on which REIA, where they are located and if they have a mastermind subgroup.
If you need an attorney in your area PM me for a referral.
Whatever choice you take, open a separate business checking account immediately. Never comingle personal and business money. Need money out of the LLC write yourself a check. Never let the LLC pay your bills.
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