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Creating an LLC for beach condo
Posted on 5/8/24 at 1:37 pm
Posted on 5/8/24 at 1:37 pm
Anyone have insight on proper way to setup an llc for a condo on Alabama gulf coast for a Louisiana resident?
We’re closing on a condo later this month that has been in a rental program. It’s booked all of June and most of July. We’re not going to disrupt the existing bookings so we figure might be a good idea to setup an LLC.
I have called two attorney offices, but no call back yet. So I thought someone here might have some experience.
Does it matter if LLc is formed in Louisiana (our home state) or Alabama (property location)?
We’re closing on a condo later this month that has been in a rental program. It’s booked all of June and most of July. We’re not going to disrupt the existing bookings so we figure might be a good idea to setup an LLC.
I have called two attorney offices, but no call back yet. So I thought someone here might have some experience.
Does it matter if LLc is formed in Louisiana (our home state) or Alabama (property location)?
6
Posted on 5/8/24 at 1:48 pm to tigers win2
Google Legal Zoom
Posted on 5/8/24 at 2:28 pm to tigers win2
I can help a little.
Get a real estate attorney. They did mine here in Georgia.
You will also need a bank account. Before you get the bank account you will need to register with the IRS for an EIN number. I did it online in a few minutes.
I chose to do a partnership which means you can just pay yourself a distribution at year's end.
The default is a partnership if you don't know what to do.
I did this a while back so my information might not be accurate or might be different in my state.
Like I said though, get a real estate attorney to walk you through it.
Get a real estate attorney. They did mine here in Georgia.
You will also need a bank account. Before you get the bank account you will need to register with the IRS for an EIN number. I did it online in a few minutes.
I chose to do a partnership which means you can just pay yourself a distribution at year's end.
The default is a partnership if you don't know what to do.
I did this a while back so my information might not be accurate or might be different in my state.
Like I said though, get a real estate attorney to walk you through it.
This post was edited on 5/8/24 at 2:33 pm
Posted on 5/8/24 at 8:05 pm to tigers win2
Louisiana LLC registered to do business in Alabama. Go to La. Sec of State online and you can set it up yourself online in about 10 minutes.
Posted on 5/9/24 at 6:02 am to jfw3535
Agreed. OP can use a Louisiana LLC to own the property.
Posted on 5/9/24 at 6:28 am to tigers win2
Louisiana LLC is fine.
Personal use taxation kind of sucks for seasonal real estate. Never visit unless you can document you have done maintenance.
Personal use taxation kind of sucks for seasonal real estate. Never visit unless you can document you have done maintenance.
Posted on 5/9/24 at 8:01 am to OceanMan
I dust the blinds and the wife buys shite at Target and Lowe’s…we write off EVERYTHING on the trips.
Posted on 5/9/24 at 8:59 am to tigers win2
Are you lending money? Keep that in mind, if a business/ llc owns it then the loan should probably be in the business name which potentially means a business loan.
Beyond that you pretty much just set up an LLC and you need to open a business checking account and do EVERYTHING financially through that. You will need an EIN.
If its only for a couple of months, you can usually get $1 mil liability for $400/ year. You may consider just doing that. Get an extra personal umbrella also, and move on with life.
Beyond that you pretty much just set up an LLC and you need to open a business checking account and do EVERYTHING financially through that. You will need an EIN.
If its only for a couple of months, you can usually get $1 mil liability for $400/ year. You may consider just doing that. Get an extra personal umbrella also, and move on with life.
Posted on 5/9/24 at 9:27 am to tigers win2
Alabama....Jule Herbert in Gulf Shores
Posted on 5/10/24 at 7:27 am to OceanMan
I got a loan out in my name for real estate. Still trying to figure out how it structure for tax gains into a llc. Anyone have any advice. Plan was to make an appointment with a tax attorney.
Posted on 5/10/24 at 10:03 am to Sunnyvale
quote:
Still trying to figure out how it structure for tax gains into a llc
There's no benefit tax wise really to have it as an LLC over your social security. Business expenses are business expenses. Depreciation will be the same. I'm not a CPA, but making an LLC won't save you money in taxes over being personally owned and operated. Its more for organization and for liability.
BUT, you need to 100% have a business bank account where you place some money in the beginning as either a loan or as equity into the business. Then operate 100% of the finances out of that one single account. If you forget your business card at home, write yourself a check back for that exact amount you spent.
DON"T INTERMINGLE EXPENSES AND INCOME. NOT ONCE.
Get very strict about this. Pay yourself a dividend where there is profit from your business account to your personal account, then spend it from there.
One potential savings is direct deposits into a retirement account from your business account. Get with a CPA or look into that further yourself.
Posted on 5/10/24 at 2:23 pm to baldona
People get hung up on "forming" an LLC. It's an online form, which takes 20 minutes to fill out and is so easy a Rummel grad could do it.
But if you don't know why you're forming the LLC, or how to structure everything, just having the SoS certificate isn't going to do much for you. For example you can form it as an Louisiana LLC, sure. But do you know how to register it to do business in Alabama? All of a sudden you're dealing with two states' llc laws, not one. And maybe that makes sense or is no big deal, but it is a step you have to research and think through. There's a bunch of stuff like this.
To be clear - none of this is incomprehensible or unmanageable once you know what you're looking for. The unknown unknowns would nevertheless cause me to at least call an Alabama lawyer or two and ask.
But if you don't know why you're forming the LLC, or how to structure everything, just having the SoS certificate isn't going to do much for you. For example you can form it as an Louisiana LLC, sure. But do you know how to register it to do business in Alabama? All of a sudden you're dealing with two states' llc laws, not one. And maybe that makes sense or is no big deal, but it is a step you have to research and think through. There's a bunch of stuff like this.
To be clear - none of this is incomprehensible or unmanageable once you know what you're looking for. The unknown unknowns would nevertheless cause me to at least call an Alabama lawyer or two and ask.
Posted on 5/11/24 at 2:55 pm to baldona
CPA...Bert Sanders Orange Beach
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