LLC

Hi Max,

My day job is working for an accounting firm. Read your post, picked up my phone and asked our tax manager your question. In his opinion there is no benefit or harm in using your home address for your LLC. He said it boils down to if you want the government to have your home address. But when I asked him if they could get your address even if you didn't have it as your mailing address, he said yes.

But why using legal zoom to set up your LLC? You can do it yourself in 10 minutes and only have to pay the state fee. In CA it is $80. I did do a post earlier on LLC's and how to find the free information so you can set one up yourself.

Hope this is helpful.

Wendy

Yes I do recall seeing a post on LLC's here in the forum some time back, but I wasn't interested in setting up an LLC at the time so I didn't really get too in-depth with it. I was going to go through legalzoom because it was only charging $150+. I didn't complete it yet and I'm glad that I didn't because I just got back home and logged into here and saw an answer to my post:) Well I'm glad that you responded to my post because now you've just saved me money that I really didn't have to spare. I'll look for your LLC post and take things from there. The reason that I didn't want to use my personal address is bcause they(people on these forums) say to keep your personal information away from your business and never mix up the two. Well thanks again Wendy!

Sincerely
Maximilionalpha

You're very welcome. You could use the money you save from setting up the LLC to set up a PO box! I've heard that about aninimity as well. I was also told that it was important to have a HELOC on your personal residence...for protection from lawsuits. But about three weeks ago the lenders decided that the unused HELOC should figure into the debt to income ratio. I suddenly found myself not able to qualify for much of anything. So now I am working on private funding (HML are way too expensive) and wholesaling. Anyway.... Here was my post.

"I'm in California and I have been working my JOB and learning everything I can about investing in Real Estate. I'm fortunate in that my JOB is at an accountant's office. Funny how I never paid attention to those financial statements and other day to day things that pass my desk other than to do my little part to each project. But with my new business, I now have a lot of questions. I wanted to share some inside information on forming an LLC. I spoke to a RE lawyer and also another business that "helps" you set up your business entities. The cost quoted was anywhere from $1,999 to $3,500. OR... in California you can follow these directions and do it yourself for $70.

Go to the Ca Secretary of State website
Business Programs - Forms & Fees
Limited Liabillity Companies
Articles of Organization (Form LLC-1)

You will find the instructions and form to fill out. You can either print it and fill it out or fill it in on the computer. You will need to print it and mail it along with your check for the fee as they do not let you submit online.

In California there is a minimum of $800 in taxes you pay annually.

You may wish to apply for an EIN number first or just use your social.

Hope this is helpful.

P.S. I also found the form for Lousianna by going through basically the same steps."

Wendy

Only one thing to add. If you can use a business address I believe thats always best. With the internet these days and public information. If you use your home address on the LLC more people can get acces to that, which is not always the best in my opinion. As a multiple business owner myself, I always try to minimize personal connections with business. Just a thought!

Craig

I don't have a business address to use for my LLC. I was thinking that maybe if I went and got a P.O. Box that I could use that as a business address, because I really don't like the idea of using my own personal home address for my business address.

Maximilionalpha

Thanks a bunch Wendy!

I googled for the Pa State website that and found what I needed. You're right, it is cheaper than legalzoom, not a whole lot, but still cheaper. Again, thanks alot for that bit of info. And Craig I also found a solution to the address issue as well. On the state website they offer you the choice of using what's called a Commercial Registered Office Provider, or CROP for short. I think that will be the way I will go. Again, thanks alot you two!

Maximilionalpha

You can also try amerilawyer.com. they're much cheaper than legalzoom. I think they charge less than $50 above your state fees. take a look at the site if you didnt already set up your llc

Felicia

Hi Felicia,

That's a pretty reasonable site. The only problem with that site though is that it doesn't deal with the state of Pennsylvania. I'm going to call them and see if there's some way that they will. I really like that site too(very good bargains).