General LLC Questions

[Mike Gordon]

I think I'm ready to form an LLC for the next property I buy and am currently writing a few offers. I had some questions about LLCs that some of you might be able to answer:

- I'm thinking of filing in Nevada or Wyoming. It looks like the annual fees are higher for Nevada. I live in CA currently. Does anyone recommend those states or others?
- Is it hard to change the mailing address of an LLC? I one day intend to spend more time in a state like Nevada and would want the address to be there.
- How does an LLC pay business related expenses? Do you always have to find a bank that provides business accounts? Can you "expense" expenses with a personal credit card and draw a reimbursement? I'd like to hear about how others manage this.
- If you have a property in an LLC how hard it is to refinance or take a loan against the property in the future? Does an LLC prevent you doing it with your personal credit?
- Are there any unexpected expenses you ran into with LLCs other than the annual state filing fees?

[Jake S.]

• - Nevada and Wyoming are both popular choices for forming an LLC because of their business-friendly laws and regulations. However, the annual fees and requirements may vary depending on the state you choose, so it's important to do your research and compare the options before making a decision.
• - Changing the mailing address of an LLC is usually a straightforward process that can be done by filing a change of address form with the state where the LLC is registered. However, keep in mind that if you do decide to move the LLC to a different state, you may need to dissolve the LLC in the original state and form a new one in the new state.
• - An LLC can pay for business-related expenses using a business bank account or personal account, but it's generally recommended to keep personal and business expenses separate. You can "expense" business-related expenses with a personal credit card and draw a reimbursement, but it's important to keep accurate records and receipts for tax purposes.
• - Refinancing or taking a loan against a property owned by an LLC is possible, but it may be more complicated than doing so with personal credit. Lenders may require the LLC to provide additional documentation and may charge higher interest rates. However, forming an LLC does not necessarily prevent you from using personal credit to finance the property.
• - In addition to annual state filing fees, there may be other expenses associated with running an LLC, such as legal fees for setting up the LLC, fees for obtaining business licenses or permits, and fees for hiring a registered agent to receive legal documents on behalf of the LLC.