Posted by John Merchant on May 23, 2006 at 12:30:10:
I think in your position,I’d start by talking to one of your JAG people and lay out your situation to that legal pro.
Suspect you’ll be told to make contact with a lawyer in either TX or Alabama and pay them for their input.
The right lawyer for you would be somebody in a bigger business firms’ business and RE section and if they need more specifics on tax issues their firm will likely have a tax lawyer.
One specific suggestion I can give you now: You’ll need to have a resident “agent for service” in whatever state your LLC is formed in…and that person (frequently a family lawyer)will likely use his office address as the address of the LLC.
I know that I’ve formed and acted as AFS for a number of LLCs & corps and I’ve always used MY office address with no problems.
Advice? - Posted by JR
Posted by JR on May 22, 2006 at 09:34:15:
Looking for advice from those who have set up an LLC, Trust or C Corp.
I own three rental properties. One in Texas and two in Alabama. I am stationed overseas in the military, and my state of residence is Texas.
Two concerns I have based on my research so far:
- In looking at the state secretary web sites, to form a business you must list an actual address (not a P.O. Box) for the owner/agent or initial office location. Overseas military addresses are mostly all P.O. Box addresses. Any suggestions to get around this?
- Taxes. As an individual, the rental income is included on personal Federal Income Tax forms. Texas does not have personal income tax so I am good there. Do to military duty and not being a resident of Alabama, I do not have to pay income tax there. Again, both locations are taxed at the Federal level.
If I form a business in either AL or TX, there is a business tax on the income from “leasing of property”. If I am forming a business for liability protection, is this just one of the costs associated with the protection? Is there a way to prevent/minimize (other than normal deductions), or am I missing something?
If I form a trust for each property are these entities treated similar to a business in that a “sales” tax would have to be paid on the rental income?
Thanks in advance for any input from those who have gone through the process, and know the end results. I know the actual process of forming a business is not that difficult, but I want to avoid adding expenses if possible. Also being overseas, it is difficult at times to contact legal and accounting personnel for advice. I am past the point where I should have formed my “team” of advisors, so am now trying to catch up, while I have a break in deployments even though I am still overseas.
Sincerely
JR