Posted by chet on February 01, 2005 at 24:20:06:
I’ll try to get permission to post the whole presentation.
Where should I form my LLC/Corp? - Posted by Mac
Posted by Mac on January 26, 2005 at 01:29:31:
I reside in CA. I am planing to buy properties (SFH) in Texas mostly to lease out but occasionally would buy and sell. And also plan to hire a property manager to manage the properties. I am looking to form an entity to limit my liability.
The questions are:
1/ Should I form the entity in CA or Texas?
Since i reside in CA, i will want to run the business from CA, is it a problem if i form the entity in Texas with a CA address? What is the alternative?
2/ What entity would be best LLC/s/c-corp?
Many thanks,
Mac
Re: Where should I form my LLC/Corp? - Posted by Rene Carvajal
Posted by Rene Carvajal on January 26, 2005 at 16:08:38:
I am doing the same thing, but from D.C. to Texas. I am forming an LLC to hold the properties under, and a Corporation to manage the properties. I am forming everything in Texas since I am planning on moving back. My lawyer told me it really did not matter what state you formed the entity in. Some things to consider,
- The cost to form the entity per state
- You will need a reg. agent in Texas, and/or a COA, depending on where you form.
- Yearly fees per state.
- Texas does not recognize a S-Corps.
I don’t claim to be a expert just passing along what I read here. http://www.sos.state.tx.us/corp/business.shtml
I am sure they have one for CA, compare the two and see which is more friendly.
Hope this helps.
Re: Where should I form my LLC/Corp? - Posted by chet
Posted by chet on January 26, 2005 at 11:43:38:
If you’re here in the bay area, I was just at an REI club meeting where this all was discussed.
I wonder if he’d be will to post his outline.
Re: Where should I form my LLC/Corp? - Posted by Mac
Posted by Mac on January 30, 2005 at 15:42:26:
Rene,
if i choose to form the entity in Texas, then i will need an address in Texas right?
Could you show me how to do this?
actually open an office? how about the cost, isn’t this too high?
or just rent an address and have all the paper mail forward to my home address in CA? where can i find this service? address rental?
Re: Where should I form my LLC/Corp? - Posted by Mac
Posted by Mac on January 30, 2005 at 15:31:41:
Chet, I am not from the Bay area.
Could you help me with what you’ve learned from the meeting, please?
Re: Where should I form my LLC/Corp? - Posted by Rene
Posted by Rene on January 30, 2005 at 20:50:47:
If you choose to form in Texas, you will need a registered agent with a
physical address, no PO box, unless the town that the RA is in is less
than 5000 then it can be a PO Box. It does not matter where you are
located physically. IOW, you are registering to do business in TX, the
company can physically be anywhere in the states. For example, I am
in MD, but setting up my LLC and Corps in TX. I have a registered
agent in the state, which can be a business or a residents physical
address, willing to act as my “state representative”. Someone
the state can contact on behalf of my business entity. So in your
case, you are “renting” the services of a registered agent, I can’t tell
you how to find a RA other
than searching online for a registered agent in TX, nor do I now how
much the service cost. I spoke to a lawyer here in MD that would have
been my RA if I would have formed here in MD, Luckily my brother runs
a business in Texas and will be my registered agent. I’m sure the
management agent you are working with might be able to help.
So the bottom line is you form in Texas and operate out of CA. I will
tell you that it cost 300 bucks to form in TX and they do charge a
Franchise Tax every year. Again this is what I have found on the fly
and could be off on the details, but no one has told me differently, I
will post if I find out anything different from what I have informed you
of. Sorry I could not be more of a help.
Re: Where should I form my LLC/Corp? - Posted by chet
Posted by chet on January 30, 2005 at 22:05:05:
I have not rec’d a copy of the lawyers handout.
But from what I heard (and this is esp. true of CA) He showed an example of forming I think it was 20 LLCs.
Cost w/ CA LLC ~20K
Cost w/ DE Series LLC ~3K
If I get the pressentation notes I can post some of the s-corp/c-corp gotchas as well as potential SE tax if you’re doing flips in and LLC.
Re: Where should I form my LLC/Corp? - Posted by mac
Posted by mac on February 01, 2005 at 24:15:09:
thanks. this really helps
Re: Where should I form my LLC/Corp? - Posted by mac
Posted by mac on February 01, 2005 at 24:17:17:
if you could, please.
many thanks.