LLC questions!!! - Posted by EJ-ATL

Real Estate Investing
1

Posted by I.R. on February 08, 2005 at 20:24:24:

A CPA isn’t authorized to practice law, so he/she would not be the right professional to see about setting up any legal entity for you…unless he/she is also a licensed lawyer, which some are.

2

LLC questions!!! - Posted by EJ-ATL

Posted by EJ-ATL on February 08, 2005 at 18:08:37:

I have 3 rentals and i established an LLC. The LLC has been established about 3 years ago but i haven’t used it
yet. I would like to use it to purchase more properties but dont know how to go about it. I would like to know the following:

  1. Which is better to use an LLC or a trust for holding property?

  2. Do you need to use a lawyer or CPA to set up trust or can you do it yourself?

  3. How do you start to purchase through LLC or does it matter if i do?

Appreciate it if anyone can help!

3

Re: LLC questions!!! - Posted by Brad Crouch

Posted by Brad Crouch on February 11, 2005 at 21:26:05:

EJ,

I would suggest putting the property into a land trust. Then while the
land trust “holds” the property, the beneficial interest is given to an
LLC where you have an interest.

So the trust holds the property and the LLC holds the beneficial
interest. Pretty bulletproof that way.

Brad

4

Re: LLC questions!!! - Posted by Renee

Posted by Renee on February 08, 2005 at 20:39:07:

  1. Have you checked the LLC to be certain it has not been administratively dissolved? If you have not paid your annual fees, it may no longer be an active LLC.

  2. A trust. A trust can “hold” property if set up properly. An LLC is just a limited liability company that can buy and sell property, but not ‘hold’ it in trust.

  3. As always, the advice of pros is recommended.

  4. An LLC purchases like a person. You go to closing to buy the property in the name of the LLC signing as “authorized agent/member” (or whatever your title is) in the LLC for the company. All subject to the Bank’s approval, of course. They are not favorable to these kinds of purchases and have been known to turn them down.

Your chances are better putting it into the name of a trust.