NH LLC form has “management is vested/not vested”. What is vested management? The LLC is two members (husband and wife). Are we vested managers?
Second issue: We own a commercial building personally for 20 years and rent it to our corporate business in a net/net lease. Should this be put into an LLC?
If so, now that we are going to buy more investment properties, I would not want to mix the existing building with the newer properties. Any problem with starting a different LLC for the other properties.
I heard of a Boston cab co. putting each cab into its own LLC and the court ruled it wasn’t allowed because the LLCs were not properly funded.
A tax attorney/accountant speech said that to be properly funded for the average middle income person you should consider starting another LLC when equity is approx 200,000-300,000.
Thanks for the info Mark.
I will finish paperwork for the LLC next week for the new properties.
I have corporate insurance on the commercial building and an umbrella on our homeowners. If I decide to set up a different LLC for this property, do you think I need a separate checking account, etc? The only thing happening with this property is to deposit the rental check each month.
Absolutely use a separate checking account. Each LLC is a distinct entity and should be treated as such. It has it’s own accounts, it’s own set of books, it’s own set of corporate minutes and resolutions, it’s own EIN. Do not mix annual meetings amoung the various entities you and your wife own. Do not mix their accounts. Do not transfer money between them unless it is a borrower/lender type of situation at market rates. Everything must be done at arms length or through the members accounts. I know it’s a bit of pain, but failure to do so risks the liability shield, especially when the members are also the managers.
What is the best way to purchase a property for personal use, then later rent it out under the LLC? Would it have to go through an actual change with a title company and such? How much would a transfer like this cost?