(I’m posting this to other forums as well)
A friend and I are starting this together, and we both agree that we shouldn’t use our own names to do business. I’ve heard that partnerships aren’t the best way to go either, as you can be held personally responsible for your partner’s legal debts and issues. So would forming an LLC be the best way to go, and how do you divide the LLC between two people? How about doing it ourselves online or better to be safe and have an attorney do it for us?
Thanks -
Jimmy D
Hi Jimmy D,
I would definitely suggest starting an LLC. I’m not sure how you’d divide it up, but I imagine you’d want to divide it based on initial capital investment(?).
Also, doing it online is a piece of cake. Don’t pay anyone to set up an LLC for you, do it yourself. It’ll take you 20 minutes, tops.
-Slip
I appreciate the insight, Slip. Neither my partner have anything invested right now, that’s how new we are. We just decided to do this last week. Any suggestions for sites to do the LLC online?
Thanks,
Jimmy D
Yep, go to the Secretary of State’s website in the state you wish to form your LLC in.
They’ll charge you some fees to form an LLC, but not nearly as much as a lawyer would.
I think it was about $160 to form an LLC in Kansas when I did it at the begining of the year.
You can apply for an EIN over the phone with the IRS for free, too.
My biggest suggestion is to learn everything you can about this kind of stuff, otherwise you’ll pay top dollar for the “professionals” to click a few buttons. (Disclaimer: Always seek legal advice on the REALLY important stuff, and know when to spend the money to do it!)
-Slip
Hi this is Steve in Florida,
I was advised and it makes sense. WHen you decide to create the name, make it meaningful to you and your partner, dont use your names in it. Makes it harder for people to track down you. YOu will be listed as the managing partner, but it wont be iin the name of your company. Ex. I just formed my LLC and named it: C & O Property Investments, LLC. No where in it is my name. Steven Oki.
Just another step in the asset protection process.
take care
steve
That’s a good point, Steve.
An even better idea is to be even more vague.
Instead of C&O Property Investments, I would recommend something like C&O Enterprises, LLC.
This way, if for some reason the real estate venture doesn’t work out, you’re not left with a dead real estate company.
If you use C&O Enterprises, you could change your business strategy and are not limited by the name of your company.
Just a thought.