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I have a few questions about LLC's... any ideas where to go?

  1. I'm looking for a few answers about using an LLC for real estate and was hoping to find an online forum for some advice before talking with an attorney. Any ideas for where I can find such a forum?

    Dan
    Sacramento, CA
     
  2. biggerpockets.com
     
  3. Thank you!
     
  4. Bigger Pockets is an excellent resource. There is a young CPA named Brandon Hall that can offer some good, practical help, on utilizing LLCs. As you may know, the LLC provides protection from liability, but doesn't do much for taxes, so it's helpful to talk to a tax attorney that specializes in real estate when you set up your LLCs because if you get it right the first time, it helps you set up your accounting to be a bit easier. I just went through a big re-org with my rentals this year and realize how much time and money I would have saved using a good attorney to start with.
     
  5. I'm from PA and decided to form a Nevada LLC through Nevada Corporate Headquarters. The work closely with L.L. Bradford. Ask for Nick Patel, he's my accountant. The also work closely with Compupay for payroll. All banking through Wells Fargo.
    The benefits of a Nevada LLC outweighed every state I researched. Too numerous to mention. Hope that helps.
     
  6. A bit off topic as the question was regarding real estate. Submitted an application to TD Ameritrade today to open a LLC account. Separating and protecting assets. :)

    The process so far has been much easier than I anticipated. I setup the LLC using my state's website and the only cost was the filing fee.

    I imagine real estate is a much more complex situation than a trading account.
     
  7. Did you need to sign anything regarding getting margin? I've always been curious about that topic, it seems like one could really take advantage of a broker by doing a LLC and then engaging in extremely risky margin trading, leaving them to hold the bag at the end. I would expect they would want some sort of personal guarantee in order to extend your corporation margin credit to (sort of) protect themselves in such a scenario? If not, for those of you out there selling OTM naked puts at 5X (or greater in certain PM account configurations) margin, this is your structure to keep them from taking the house, boat, newborn children, etc at some point :D
     
  8. No, not yet at least. The application was very similar to the application for individual accounts. I selected margin with tier 3 for options which are the same privileges my individual account has. PM is available for business accounts as well.

    A LLC is limited liability. If the broker has enough evidence that a trader intended to take advantage of them, they likely can go after the owner of the LLC (the trader).