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Makrita
real estate investor
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Property Management Cos.
Tuesday, October 17 2006 09:30 AM
Do you recommend we use an IL LLC for our property management co.? Or do you still recommend this be an out of state LLC (ie. Virg, etc.)? I was just thinking about the tax implication that business is being conducted here in IL, etc etc.
Also, how does one become a 'property mgmt company''? I'm being told by a tenant screening co. that I have to be licensed or something???
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Randy Hughes
Master Advisor-39 years of experience
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Re:Property Management Cos.
Tuesday, October 17 2006 10:14 AM
Makrita,
If you are managing your own property, you do not need a license (whether or not you are a corp. or an LLC). If you are going to manage other people's property you need at least a Leasing License. However, the leasing license has to be "hung" with a R. E. Broker.
Regarding where to form your LLC, you are confusing our suggestion to use Virginia Land Trust law with LLC law. We recommend using Delaware to form your LLC and ask for the Series LLC when forming it. Do not worry about the tax aspects as you will file a federal return on the LLC no matter where you form the LLC.
Randy Hughes
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Makrita
real estate investor
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Re:Re:Property Management Cos.
Tuesday, October 17 2006 02:33 PM
Guess I thought that because I'd be conducting business in IL, I should form the mgment company LLC in IL. But you still recommend forming the LLC in Delaware (using the series LLC).
And just to clarify about the license for managing properties: Even tho I won't be owning the properties (i.e. trusts, etc) I won't need a license? Because technically, I'ld be using your format for ownership structuring and entity's.
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Randy Hughes
Master Advisor-39 years of experience
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Re:Re:Re:Property Management Cos.
Tuesday, October 17 2006 02:46 PM
1) I do not like Illinois LLC's for a number of reasons notwithstanding the huge annual renewal fees.
2) As long as you are the beneficiary or an entity that you own is the beneficiary of the land trust you will be ok.
Randy Hughes
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Makrita
real estate investor
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Re:Re:Re:Re:Property Management Cos.
Wednesday, October 18 2006 09:46 AM
Who do you recommend for setting up the Delaware Series LLC? I see there are many companies on the internet that'll do it for various pricing.
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Randy Hughes
Master Advisor-39 years of experience
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Re:Re:Re:Re:Re:Property Management Cos.
Wednesday, October 18 2006 10:01 AM
Makrita,
We like: http://www.corporate.com/
They are reasonably priced.
Randy Hughes
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