If you live in a state that is a bit unfriendly to small businesses, you might have considered just forming your LLC in a state that isn’t. Investors do this frequently. Here’s the thing though: If you intend to form your LLC in a state that is more friendly to small businesses like small real estate investment companies, you will need a registered agent. That’s your legal obligation.
What does that mean? Well, if your LLC is registered in another state, you have to have someone in that state to handle all of your LLC’s legal and tax documents, and be held accountable in matters of law. You have to have a resident of that state as your registered agent to avoid breaking laws, almost always. Of course, there are a few states where the LLC can serve as its own registered agent. There’s also a way around it if your business has an actual physical address in the state in which you formed your LLC.
So, while you may have heard others registering LLCs in other states that are friendlier to small businesses, it’s not as simple as they may make it seem. Check into the actual laws of the state where you are considering forming an LLC for your real estate investment company and consult with your attorney. Otherwise, you may find that you inadvertently break the law.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.