Ok, so I started a signle member LLC....Now What?

[newbie man]

Ok, so I started an LLC. I know....I know...I started a little premature, but I knew an LLC was the best option for what I wanted to do.

I'm just wondering about business maintaining side of it. What do I need to do on a daily, weekly, monthly, or quarterly basis to maintain it accordingly? What are my main LLC responsibilities besides reporting my income to IRS at the end of the year? I recieved my certificate of approval from my state, so am I considered a CEO now? Hope that's not a dumb question, but again Im trying to get this off the ground. I feel the only way is to earn while I learn without getting burned!

[BLL]

Ok, so I started an LLC. I know....I know...I started a little premature, but I knew an LLC was the best option for what I wanted to do.

What is it you want to do? SMLLCs have very little protection unless the single member is another entity. If you set this up to isolate your personal assets from your business liability, you have a chosen a very poor set up.

[newbie man]

I guess maybe I did this the wrong way then. I wanted to be a seperate entity. All I did was fill out the domestic llc form with my state and they sent me back a certificate of approval. How was I supposed to make myself a seperate entity? That's what I meant to do....I guess I thought it was automatic. stupid stupid stupid      

What should I do Now?

I'm just trying to invest in real estate by doing lease options, wholesaling,  and sub2 investing. I guess I was looking more at credibility side more than the neccessity side of an LLC

[BLL]

I would just use a DBA. It will allow you to operate in a business name without all the formalities and hassles of an entity.

An LLC is much more than filing some forms with the state. It needs a well drafted operating agreement, meeting minutes and resolutions to document major decisions, a business checking account, etc. Even with all those things in place, you expose yourself to creditors if you take a major role in the operation of the business. An LLC is just a tool that should be used in conjunction with other tools as part of a comprehensive estate and business plan. It doesn't do much by itself.

[newbie man]

Ok, so how do I get started with a DBA? sorry for all these quesitons I just want to get this all right!

[BLL]

For me, it's a trip to the city clerk's office.

[TMCG]

dude, first of all you need to know what it is you want to do.  start there - forget all this other stuff - it's overkill and pointless. 

just figure out where you're at and what you plan to do.

what's your background - obviously, it's not business.

 

[VetteBoy]

You can call yourself about anything you want, but you're either a member or the manager depending on how you set up the LLC.  It is very important you have an operating agreement in place, regardless of being a single member LLC.

Couple things to keep in mind if you hope to seperate your personal liability. You MUST have a bank account with the LLC name, with LLC after it. Business cards, advertising, and EVERYTHING else concerning the business MUST contain LLC on them so there can be no question later about weather or not anyone was dealing with you, or the business. That's important, don't mess it up.

DO NOT co-mingle funds or assets or your LLC will become transparent.....gone.  Which means under no circumstances can you write a check from the LLC to pay your personal mortgage, etc.

Do some research on LLC's here, there is a ton of it readily available. There is quite a bit of case law now that does afford you personal liability protection PROVIDING you do not PERSONALLY guarentee things i.e. lines of credit for the LLC, etc.

However, to fully protect yourself you should put personal assets (home) in a land trust, the trustee being an LLC, with yourself in control of the LLC. Cars in a personal trust in the same manner, etc. You then maintain control over the assets, but don't "own" them on paper.

The DBA, while easy and quick....leaves you 100% liable personally. A simple business mistake can cost you EVERYTHING YOU OWN, literally.

[BLL]

However, to fully protect yourself you should put personal assets (home) in a land trust, the trustee being an LLC, with yourself in control of the LLC. Cars in a personal trust in the same manner, etc. You then maintain control over the assets, but don't "own" them on paper.

Business entities cannot own personal assets. This sham will never hold up. Besides, putting property in the trust voids any homestead protections and property tax reductions. A homestead is more powerful protection than an LLC. OJ keeps his mansion because of his homestead. Every other attempt to keep assets has failed.

[Deal Hunter]

Business entities cannot own personal assets. This sham will never hold up. Besides, putting property in the trust voids any homestead protections and property tax reductions. A homestead is more powerful protection than an LLC. OJ keeps his mansion because of his homestead. Every other attempt to keep assets has failed.

Entities that can hold business assets are Domestic Security Trusts, Offshore Security Trusts and Limited Partnerships.  Formation and proper execution of these entities will shield your personal assets.   However, these are expensive and extremely complex structures.

Most people use land trusts, llc's and living trusts to transfer property "out of their name."  These are "disregarded" entities and do not provide full separation of assets from personal liability.

To the OP:  Properly maintaining an LLC for investing purposes requires a great deal of work - called "compliance."  You need to figure out how much $$ equity you need to protect and weigh the cost/benefit of the work and expense of an LLC.