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LLC's - Does anyone have any feedback?

I'm condsidering creating an LLC for my real estate business but I don't know much about them and the books on them are thick! Has anyone had any positive or negative experiences with an LLC and how did you go about creating one. I've heard that you can actually put one together yourself, but not having enough time to even do my nails most times I worry that I won't cover all the details necessary and miss something. Am just in the information gathering stages at this time so if any of you guys can help it would be much appreciated.

Posted by CHRISTINE LIBRACH on 10/17/2007 07:20 AM

Comments (8)

llc, creating corporations, real estate teams and llcs

8 Comments on LLC's - Does anyone have any feedback?

OCT

2007

I have done an LLC and and S corp in the past. An LLC is a lot easier in my opinion to work with. Especially when it comes to taxes. You also have the protection additional from suits. If you have investors or partners I find it is also easier to allocate and define membership in an LLC. Just save some money at the end of the year so you can pay any taxes you owe from the LLc. You can handle this as a payout from the LLC

Christine,

I'm sure you can do it yourself, but I am sure a good attorney and CPA can tell you WHY you should do it at all, and if it fits your needs.

I'm curious. What do you expect to achieve with a business entity? What is your goal?

I WOULDLIKE PROTECTION FROM SUITS FOR ONE, SECONDLY TAX SAVINGS AND THIRD, WITH BUSINESS PARTNERS IT MIGHT CUT DOWN ON POTENTIAL FINANCIAL PROBLEMS. BUT I DON'T KNOW ANYTHING ABOUT THIS STUFF AND IT'S A BIT SCARY - I'VE HEARD SOME PEOPLE SAY IT'S THE ONLY WAY TO GO, THEN OTHERS SAY IT'S DIFFICULT TO GET OUT OF IF THE PARTNERS DON'T SEE EYE TO EYE???

Just talk to your closing attorney...They can really explain the benefits and drawbacks of each one. LLC's are the most popular. Also ask you tax accountant some corps can massage tax laws better than others. I think in South Carolina at least a lawyer has to draw up the paper work anyway.

Following the same advice I give to FSBO's...I hired a pro. When I decided to LLC and took a look at all of the paperwork involved, I elected to spend a couple of hundred extra to have a pro file it for me and make sure it was all done correctly. My CPA handled it.

FYI--My husband formed an LLC and when "matter starting hitting the fan" over a contract dispute with a business associate, my husband and his LLC were sued. He was in complete shock about being personally named and his lawyer informed him that LLC's aren't to protect your from being sued, it is to protect your personal assets in the event of losing a lawsuit. People can sue anybody (or entity) for anything at anytime. It cost him thousands of dollars in extra legal fees just to have himself removed from the suit.

My broker is considering getting an LLC, for the stated reasons of protecting personal assets. Let us know what decision you come to!

My thoughts are similar to Amanda's story.

I am under the impression that an LLC offers minimal impression.

But that is not the same as qualified legal advice.

And I think the most valuable way to handle the partner issue is to have YOUR attorney review, if not draft, the prenuptial agreement. Designing the divorce is as important as staging the marriage.

OCT

2007

Hi,,,I was told if I was going to put a lot of money back into my company, I should form an s corporation..not sure why...but I ended up forming an llc...it seemed the easiest thing to do to protect myself from liability...a single member llc is pretty simple to maintain

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