Wholesaler · Salt Lake City, UT · Member since 2020 · 46 posts · 85 votes
Hey BP,
I'm sitting here, stuck on pause, while filling out my first LLC here in Utah. Everything was going smooth, all questions easily answered, and then BOOM! They ask me for my BASIC nature/purpose of business, followed by DETAILED nature/purpose of business, and then followed by an even MORE DETAILED nature/purpose of business, all of which have a code associated.... It gives me drop down menus for each, followed by further definitions as I go down to the next drop down menu.
So I'm stuck. Would I be filing as "Wholesale Trade, Real estate/rentals leasing, education, information, professional/technical services, or "other"?
Wholesaler · Manassas, VA · Member since 2017 · 33 posts · 32 votes
5y
I would seriously consider going through an attorney experienced in real estate here, rather than a DIY filing.
If you're going through a DIY site, then the questions you are trying to answer are essentially taking a formulaic approach to creating the 'operating agreement' that will define your LLC.
Why go with an attorney?
The operating agreement from a 'DIY' site will make you 'official', but it won't necessarily stand up in court -- especially if there is a slight mis-alignment between the purpose of your business, and what is said in your LLC operating agreement. Let's hope your company never faces litigation -- but in the unlikely event that you are up against a plaintiff with deep pockets and an iron-clad animus, their legal representation will be going through your Operating Agreement with a fine-tooth comb -- and going through a "DIY" site stands a high risk of leaving more 'chinks' in your armor than going through a real estate attorney.
One more thing to consider -- if you plan on using your legal entity for a while, or if you are simply using it as a liability shield while you assign contracts, you might consider going through Anderson Advisors, and setting up a land-trust kit. This might be something to consider down the road, as it's about $5,000 up front, but it streamlines a lot of the process where a double-closing might otherwise be needed.
Real Estate Broker · Bellevue, WA · Member since 2020 · 95 posts · 65 votes
5y
Go with "wholesale trade, real estate....' since you're actually doing the business in that category. If you have other businesses on the side, just make sure everything separated in accounting.
The reason for people filing LLC is for legal protection. As long as you're doing business and maintaining all account stuff separated from your personal and other business, you're good.
Go with "wholesale trade, real estate....' since you're actually doing the business in that category. If you have other businesses on the side, just make sure everything separated in accounting.
The reason for people filing LLC is for legal protection. As long as you're doing business and maintaining all account stuff separated from your personal and other business, you're good.
Thank you. Of course as a government business, they are "temporarily down for service", figures. But I plan to file as real estate category, and state under nature of business "The buying, selling, and holding of real property and assignable contracts"
Wholesaler · Manassas, VA · Member since 2017 · 33 posts · 32 votes
5y
I would seriously consider going through an attorney experienced in real estate here, rather than a DIY filing.
If you're going through a DIY site, then the questions you are trying to answer are essentially taking a formulaic approach to creating the 'operating agreement' that will define your LLC.
Why go with an attorney?
The operating agreement from a 'DIY' site will make you 'official', but it won't necessarily stand up in court -- especially if there is a slight mis-alignment between the purpose of your business, and what is said in your LLC operating agreement. Let's hope your company never faces litigation -- but in the unlikely event that you are up against a plaintiff with deep pockets and an iron-clad animus, their legal representation will be going through your Operating Agreement with a fine-tooth comb -- and going through a "DIY" site stands a high risk of leaving more 'chinks' in your armor than going through a real estate attorney.
One more thing to consider -- if you plan on using your legal entity for a while, or if you are simply using it as a liability shield while you assign contracts, you might consider going through Anderson Advisors, and setting up a land-trust kit. This might be something to consider down the road, as it's about $5,000 up front, but it streamlines a lot of the process where a double-closing might otherwise be needed.
I'm going to have to go with Alan on this. You're definitely going to want to talk with a good real estate attorney. I assume you're looking to file an LLC to protect your assets. This is a really good article here on BP on how a real estate attorney can help protect your assets. After that, for a bit more info, read this. An LLC is important, but it's more than that. Hope this is helpful.
Wholesaler · Salt Lake City, UT · Member since 2020 · 46 posts · 85 votes
5y
Just to update everyone. I decided to continue down my path of "self-filing", HOWEVER, I gave a phone call to the state business office, and I was very kindly walked through the common steps, and I feel very comfortable with the results. I do have plans within the next few months to be creating a separate JV partnership LLC, and when that does occur, it will 100% be done through an attorney, and I will also inspect my original filings at that time. Thanks everyone!