Llc Online Or With An Attorney
I like to open an llc in nevada but was wondering if i should just do it with an online company or should I have an attorney do all thepaper work? If an online service is fine, know of any reputable online companies? Thanks for the advice in advance.
Why are you opening a Nevada Corp?
real estate management company in nevada.
Are your properties in Cali?
So your planning on having properties in Cali, mananged by a Nevada Cord?
If your properties are in Nevada nevermind me asking. I'm trying to understand your structure and why your doing what your doing.
Nebulous
Nevada is probably just the state of incorporation, it's not that she will be doing business there.
Most people look at either Delaware or Nevada to incorporate in since their Business Law is very corporate friendly
I am not an attorney but from what my professional mastermind team has told me, the tax advantages that once existed are now closed or closing. As there may still be legal reasons for wanting to incorperate, I would suggest talking to a local attorney and accountant first. Just my 2 cents.
I understand that and Rich Dad Poor Dad makes a very compelling argument as to why you should use one, however, what are your state laws regarding foreign corporations. Will you still have to pay state taxes in the state that business was conducted in, regardless of where the corp is housed? Will you have to report to the state who the members are and disclose all the personal information that Nevada does not ask for or require if you want to do business in that state? These are questions you must ask and have answered before you run to Nevada or Delaware. These 2 states are great to do business in, yes, but the benefits they offer may be extinguished when you do business in other states. Understand your state laws first, understand what is required, what must be disclosed, how taxes are paid or reported, and many many other things. I love the Rich Dad’s Advisor’s too, but put your team in place, talk to them, ask what they recommend, and then act.
Fail to plan, plan to fail.
[ Edited by nebulousd on Date 11/18/2003 ]
My plans are to have a holding company/parent company in nevada. A management company in nevada. A rental company in new york( the state where the properties are held as rentals). The rental company will collect rent and will require management consulting services from the company in nevada. The holding company is there so when ny asks for the link of the actual company is the parent company and not the management company. It is set up that way so wont be any immediate red flags through the eyes of the irs. Does that make it more clear? My question is since I live in california should I incorporate through an online company or go through an attorney for the nevada llc's?
My 2 cents on this, online works fine. If you use a lawyer, especially one that specializes in this it will cost around $1400 or more. The forms that they set you up with are almost the same as online. I set up a Nevada corp. and L.L.P. using a lawyer for other investment reasons. Now I have set up L.L.C. for real estate using online co. and saved $1000. Works great. The real problem with corp. is the ongoing costs and paperwork. It must be followed to the "t" to satisfy IRS.
Hiya doll (sorry, had to say that),
1. Do lots of homework
2. Find a good local real estate attorney that will work in a "coaching" mode, i.e., will answer your questions and review your docs, not insist on generating paperwork and lots of billable hours themselves
3. Do the company thing online
I am doing this exact thing myself right now. Have spent less than $300 on lawyers and feel confident that I understand the legal consensus/consequences of what I am doing.
Dont forget to talk with your CPA as well.
Molotov
I set up an LLC through an attorney. It went very well, but afterwards I felt that doing it online would be fine, and a lot cheaper. And if you have other advisors, I can't see why you would want to pay for an attorney.
If anyone has any arguments for the attorney I would like to hear them (so if there is a reason not to go the online route I can avoid future mistakes).
Just to update you all on what I decided on. I decided to go with an online service. I also found out that nevada no longer has the privacy act. They have to announce all members in a llc publicly. Therefore, I will be opening the company in delaware. Plus, to open a llc in delaware is much cheaper then nevada. $298 vs. $800. Thanks you all for your suggestions.
It's very easy (at least here in Ohio) to organize an LLC. There is a
couple page document you get from the Sec. of State's web site and it's very
simple and straightforward to fill out. There are basically 3 things to
decide: 1)what address to use, 2) what the name shall be, 3)whether or not
to use an authorized agent.
1) In Ohio, the only stipulation is that you can't use a PO Box. You could
use your authorized agent's address <see below>
2) In Ohio, there's an online search engine at the Sec. of State's site for
determining if there is already another existing LLC with the name you'd
like to use. Also, you have to decide whether you want to have LLC, L.L.C.,
LTD. Ltd or Limited Liabiity Company the name. You have to use one of
those.
3) This is the one I have a question about. You can use what's called an
authorized agent to turn your paperwork in. By using one, you won't need to
put any member's names on the Articles of Organization. You can use anyone
as long as they're in the state of Ohio, I believe. It doesn't have to be a
lawyer or anything like that.
Then, once you receive your certification back from the State and including
a charter number in a few days, you can call the IRS to get an EIN#. (form
SS-4)
But my question is, how big of an advantage is it to use an authorized
agent? The more I talk to people the more I think that trying to hide who
the members of your LLC are is fruitless. Everyone you end up dealing with
(contractors, tenants, etc.) will know who you are. Also, what are people
using for their address that gets filed along with the Arts. of Org if they
aren't using an authorized agent. (a private mailbox?)
How much is reasonable for an atty, for example, to charge for being an
authorzied agent? I wouldn't need them for preparing the Arts of Org. or
for preparing an Operating Agreement or even for sending in the forms or
getting the EIN#. .... just signing as an authorized agent.
Gamado, Forum advertising is against the agreed TCI website rules your property lead/information should be placed in the TCI Realty section.
Eric & Rosa
Another update: I decided not to incorprate in delaware after much more research. Especially after reading the delaware and nevada myth's. I went with Wyoming instead. This is what I found out.
Wyoming doesn’t have:
Personal income tax
Corporate income tax
Inventory tax
Gross receipts tax
Franchise tax
Burdensome regulations
Disclosure of shareholders
Business or "per-capita" tax
Excise tax
Sales, property and inheritance taxes are among the lowest in America
ADVANTAGES
Unlimited ability to issue stock—Most states set a limit on the number of shares that you are authorized to issue; Not in Wyoming. You may issue as many shares as you wish (without any additional costs or fees) . Unlimited shares may be of paramount importance to you in particular, if you ever contemplate taking your company public.
You can be everything in Wyoming—Some states require that you have more than one person to serve as the various officers and directors of your corporation. One person can fill all of the required corporate positions giving you the ultimate in flexibility and control.
Enjoy anonymity and privacy in Wyoming—The more information about you that appears in the public record the easier it is for you to become a target. Wyoming has no requirement for the names of shareholders to be filed with the state. It asks only for a simple "Annual Report" which requires disclosure of only those assets located within the state of Wyoming and the name of one person, usually the one who submits the report.
Restrictions and corporate formalities are at an absolute minimum in Wyoming.
Low annual fees—The annual fees in Wyoming are based solely on the value of corporate assets located within the state. The minimum is $50 and a million dollars worth of assets within the state of Wyoming would cost you only $200. $200 in fees for every million dollars worth of assets that you keep within the state of Wyoming and no fees for assets outside of the state.
As an officer or director you cannot be held responsible for the debts of the corporation—Wyoming law is quite strong in this respect and holds generally that as long as you did not intentionally break the law you are protected from claims against the corporation.
No minimum capitalization is required in Wyoming—You can fund your corporation with one dollar, with a million dollars or the amount of your choice. And, while there are sound business reasons of avoiding "under capitalization" the point is that the choice is yours and you enjoy the ultimate in flexibility.
Your directors and/or shareholders meetings may be held anywhere in the world—You are not required to hold meetings in Wyoming; indeed you need never set foot within the state.
Stock in your Wyoming corporation may be issued in exchange for "anything of value"—You may use cash of course but also property, services or any valuable consideration at the total discretion of the board of directors which you’ll remember can be one person.
Sorry for the long post.
my bad, it's not my property, disregard it