Well Rounded Investor

My journey of becoming financial independence by 35 years old

Creating an LLC for the New Mix-Used Rental

Well, I’m married, so I got to respect my husband’s opinion(s), he wanted to form an LLC to protect his and mine current asset. So, I did my due diligent. I called 15-25 law firms, I lost count. Some of them, I called twice, even making the wrong call to closing/title company and such.

Anyhow, I’m going to do a short write up regarding how to form and LLC.

  1. I searched the web with keywords: “How to form and LLC”. So nolo.com and a bunch of other websites gave me some great results to start with.
  2. The second keywords search “how to form and LLC in [my State]”. I found out I could apply for an LLC online, and got the certificate in seconds. Paid $100 in fee.
  3. Applied for EIN so that I don’t have to use my SSN around. This process is done online too. No fee. Check!

Why and LLC – sole proprietor vs S-corporation?

Up and until this point, I’ve been still filing my own taxes. So, forming and LLC sole proprietor would allow me to do the same on the 1040. Without the liability to our personal assets in case we got sued. Sure!

There are some other great sources explaining different companies and corporations and restrictions with a few stroke of keywords.

How much did I save by filing my own LLC? $650-$1000. Geezz, a simple 2 minutes online filing and the lawyers would charge me that much? That some crazy stuff. Either way, by calling different lawyers, asking different questions, in the end, I got the general gist, plus my self-learning online, I was able to save some legal fee.

Hustle is key!

Even though the property isn’t supposed to close until the end of the month, I’ve put in some ads to see how’s things are going.

Some interesting things I’ve learnt is how to listed for commercial properties. More on this later. Until then, have a great day everybody!!

Cheers!

Did you create and S-Corp or LLC for your business?  Did you DYI or did you go through a lawyer? Please share your experience or opinion. 

 

 

 

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4 comments on “Creating an LLC for the New Mix-Used Rental

  1. Investment Hunting
    December 9, 2016

    Congrats on the LLC. Which state did you do it in? I use Wyoming. Much cheaper, no state tax too.

    Like

    • Vivianne
      December 9, 2016

      I wish I said Delaware, but I registered it for Virginia.

      Like

  2. Investing Pursuits
    December 9, 2016

    Did you try Corporate Direct or Sutton Law? I believe that is the name. That should be Garett Sutton, who is the Rich Dad Advisor for Asset Protection. By doing it on your own, if you do not follow procedures of corporations you could lose protection of a corporation without knowing it.

    Like

    • Vivianne
      December 10, 2016

      Thanks for commenting! I was trying to use someone local so I can talk to, but they were charging some high fees. Plus the place is unoccupied right now. I’m already don’t have enough capital to fix it up as it is. I don’t want to incur any more expenses.

      Mr.W wanted this property to be an LLC and I did just that, to separate it from our assets. We’ll see as time go on.

      Rich Dad Poor Dad is a great book, I’ve heard and seen many reviews though.

      Like

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This entry was posted on December 9, 2016 by in Best post.

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