All Forum Posts by: Mike S.

@Scott Palmer First do not quit claim deed your property. Use a warranty deed instead to avoid loosing your title insurance. Second look at the Garn St Germain act that will protect you from the due on sale clause when you transfer your property to a land trust that you are still the beneficiary of. Once you have transfered your title to the land trust, you can then quietly assign the beneficial interest to your LLC. As this assignment is a private document, it is not recorded.

I am aware of the requirement to issue a 1099-MISC to your lawyer when you are paying him more than $600 per year. However I am confused about the following situation:

I have a holding multi member LLC with its own EIN.

This holding LLC owns multiple single member LLCs, that also have their own EIN. These single member LLCs are disregarded entity for the IRS.

Now lets say that each of these sub LLCs are paying the lawyer $200.

The total of all the lawyer fee will be over $600, but each LLC would be under.

Should I issue anyway an 1099-MISC from each sub LLC for $200 under its own EIN, even if it is under $600?

Should I issue a global 1099-MISC from the holding LLC EIN, even if each invoice was issued for each sub LLC, risking confusing the lawyer CPA?

Originally posted by @Jordan McCoy:

I went through groupon and got a great deal for post licensing with Azure Tide Realty.  Class had good info and the test was simple.  

Did the same. Not the best presentation for a course (a lot of redundancy in the slides), but fit the bill for a very good price. I would also suggest that you take the combo with the post course package as you will need to take it once licensed for your first renewal.

I would suggest having at least two banks:

A major national bank that will provide good services like Zelle to receive payment, good online banking with free ACH between accounts, cheap wire transfer fee, good credit card, ... I've been happy with Chase and left Wells Fargo after too many frustrations.

Then a local bank or credit union, to build some history with them and benefit from their usually better loan options.

Also, you will probably need multiple accounts anyway. One as escrow for your security deposit. You can also use another one for your taxes or major maintenance reserve.

Originally posted by @Gualter Amarelo:

@Nick Graziano I have had luck with both Capital one spark card and the chase ink card

 Same here, I got both for two different companies.

Are you talking living trust or land trust?

Structuring your real estate into entity like LLCs is usually tax neutral. You won't get any tax reduction from it, only more tax hassle (paperwork wise). Entities are mainly used for asset protection.

However, some would argue that by structuring you will lower your chances of having an audit of your taxes due to the lower ratio of audit for entities compared to claiming it directly in your 1040.

If you are using a multi members LLC taxed as a partnership, this LLC will only file an informational tax return (1065) and each member will pay the taxes on their own tax return, based on the K1 that the LLC provided them.

I have also been using Zelle for almost two years with great satisfaction.

If you are collecting your rent under a business account, just make sure that your bank accept Zelle for business account holder. Most of them do, but some, like Wells Fargo, will not.

It is not illegal if you are the seller or the buyer. You can't however be involved in a third party transaction for real estate or business without a real estate broker license (or a sale associate license working for the broker).

If you find a buyer (who is not you) for a FL broker, where ever you are, you can't receive any fee for it. And I don't believe that a broker will risk his license for you.

Are you able to physically go in person to a US bank? Is your LLC address in the US? If so, you should not have any real issue with any bank. They would require your LLC documents, proof of physical address (no PO box), EIN and your passport (maybe also proof of address for you).

Now if you can't go in person to a branch, you may have a hard time not being a US person. Your attorney should however be able open the account for you, but he may have to be a signatory on the account.