LLC's

I dont know what other states charge to form an LLC and i dont know if Minnesota is the cheapest but it is about $135.00 to form a LLC here in Minnesota. Do some research on diffrent states see what you can find.

Thanks for the 411, I start looking at different states

Nevada

I've heard that Nevada is pretty cheap to start and has a low price for renewing.

Steve

$300.

Thank folks I need all the arsenal to bring the fight

Frank, unless you just have stacks of money tucked away that you aren't using for anything else, I wouldn't worry about an LLC yet. Get some deals done, bring in some money first. No one I've talked to or dealt with in real estate cares whether I have an LLC or not. My LLC has not made getting deals any easier. Use your money for other things. Like bandit signs and gas for driving the neighborhoods. Just my opinion. Good luck with your re investing.

Thank you for serving our country.

Sandi C.

I filed in Indiana for less $80 and it was approved online. If you use the paper applicaton, its $90.

I agree with Sandi C's statement you dont need a LLC to close your first couple of deals, you should use your money for marketing your business, with bandit signs and yellow letters and flyers and gas to drive the neighorhoods you want to invest in, and don't for get your business cards. Action+knowledge=success....

I will and generate cash first and then hit Indiana next. Thanks alot guys.

Frank,

it doesn't matter which state is cheaper... if you open your LLC in one state and start doing business in another state, you will need to file in that state too (foreign file); so you're better off filing wherever you intend to do your rei business and have a business bank account...

Learning and progressing every day
Valerie

All these answers are right on. Back in the day you could get $$$ through your LLC without pers. guarantee's but those days are far gone now. LLc's for the most part protect you from liability. Since the banks are now turning their cheeks to investors it is becoming harder and harder to find money. Also I would suggest you get a couple of deals under your belt before you even consider forming your LLC. It isn't really needed at this level. Hope this helps and good luck...Jan

Thanks Jan will keep your wisdom for my success.

Thanks for the info above, everyone. I'm new to this, so it's all helpful.

Do I need an LLC for tax purposes? Or do I need to get a business license? It sounds like I can start looking for deals without them, but I'm not clear on the legal end of things.

Thanks!

Lisa

Lisa,
No you dont need an llc right now. You may want one later for tax purposes. It also make it harder for someone to sue you if you purchase property with your LLC. You may PM me for further details if you wish as my husband is a tax accountant and i can explain it in further detail with his help.

Are for when you are doing a lot of deals in a short period of time. Like if you were to do ten deals a month maybe? I don't know. One of the pros could probably tell you at what point you need to create an llc. But they are not necessary to do your first couple of deals.
If you use a company to help you file your llc, be sure to check that company out THOROUGHLY. My dad created an llc for trading. My dad used a company to help him file, and in the process, they told him all these extra add-ons were necessary to trade in the market and of course they cost more money in addition to the original fee. My dad had a feeling that those things weren't necessary, so he went talk to a lawyer friend after he filed, who also happened to trade, and found out that most all of it was unnecessary. It's been six months now I believe and my dad is still trying to dissolve the llc and now I think he has to pay some sort of yearly state tax and he hasn't even used it. So watch out for companies that try to sell you up.

RENinja

Jay Mitton, Father of asset protection lays it ALL out for you

http://www.jaymitton.com/