I got lots of good information about being a landlord of a 46 unit out of state and managing the property with a tenant is currently does everything. He collects rents, prepares vacancies for rent, shows property, takes applications, cleans the laundry room and halls. He sounds great. I don’t know him like the owner does, plus the owner lives only two miles away.
So with me being 5 hours by flight away, I thought I might keep him but was concerned about liability. The great advice I got was to put him on the books as an employee and pay workers comp, taxes etc. My question is, how do I set that up, with a CPA, an attorney, or where. What should I look out for and is there a preferable way of setting that all up?
Thanks, Jag
I beleive Workman’s Comp is state specific.
For those in business, besides having a good CPA, attorney, a good Insurance agent also comes in handy.
Presumably, you’ll set up a corp entity in the other state to operate and/or hold the property. As I recall, when I set things up:
- CPA set up LLC, then I helped get Federa tax Id numbers. CPA said he was too busy to call.
- Had to get employer ID number on state level.
- Spoke to a local insurance agent referred to me who told me what paperwork to bring along to the “NY State Insurance Fund” to get my policy set up. He went on my initial meeting with the fund underwriters. I could’ve done it myself with more research and maybe a few trips down to the insurance office.
At the time, there were other private insurance companies providing private workman’s comp coverage, but I might have probelms being a new entity. The state fund covers all.
Good luck,