Goodbye LLC
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
     
     
Goodbye LLC (by DJ [VA]) Feb 10, 2024 9:59 AM
       Goodbye LLC (by Ken [NY]) Feb 10, 2024 10:11 AM
       Goodbye LLC (by Jason [VA]) Feb 10, 2024 10:25 AM
       Goodbye LLC (by Richard [MI]) Feb 10, 2024 10:51 AM
       Goodbye LLC (by S i d [MO]) Feb 10, 2024 11:04 AM
       Goodbye LLC (by RB [TN]) Feb 10, 2024 12:23 PM
       Goodbye LLC (by DJ [VA]) Feb 10, 2024 12:44 PM
       Goodbye LLC (by Scott [IN]) Feb 10, 2024 1:03 PM
       Goodbye LLC (by Richard [MI]) Feb 10, 2024 1:36 PM
       Goodbye LLC (by NE [PA]) Feb 10, 2024 1:57 PM
       Goodbye LLC (by WMH [NC]) Feb 10, 2024 2:01 PM
       Goodbye LLC (by NE [PA]) Feb 10, 2024 2:07 PM
       Goodbye LLC (by Mapleaf18 [NY]) Feb 10, 2024 4:33 PM
       Goodbye LLC (by WMH [NC]) Feb 10, 2024 5:46 PM
       Goodbye LLC (by 6x6 [TN]) Feb 10, 2024 7:51 PM
       Goodbye LLC (by Ken [NY]) Feb 10, 2024 8:05 PM
       Goodbye LLC (by 6x6 [TN]) Feb 10, 2024 8:32 PM
       Goodbye LLC (by tryan [MA]) Feb 11, 2024 10:25 AM
       Goodbye LLC (by WMH [NC]) Feb 11, 2024 10:30 AM
       Goodbye LLC (by NE [PA]) Feb 11, 2024 11:07 AM
       Goodbye LLC (by Ray-N-Pa [PA]) Feb 11, 2024 8:41 PM
       Goodbye LLC (by zero [IN]) Feb 12, 2024 7:47 AM
       Goodbye LLC (by Jim in O C [CA]) Feb 12, 2024 8:29 AM
       Goodbye LLC (by DJ [VA]) Feb 12, 2024 10:59 AM
       Goodbye LLC (by WMH [NC]) Feb 12, 2024 11:10 AM
       Goodbye LLC (by zero [IN]) Feb 12, 2024 12:15 PM
       Goodbye LLC (by Ray-N-Pa [PA]) Feb 12, 2024 12:32 PM
       Goodbye LLC (by Ken [NY]) Feb 12, 2024 2:03 PM
       Goodbye LLC (by Jeffrey [VA]) Feb 13, 2024 8:58 AM
       Goodbye LLC (by Ray-N-Pa [PA]) Feb 13, 2024 7:55 PM
       Goodbye LLC (by zero [IN]) Feb 14, 2024 8:45 AM

Click here to reply to this discussion.
Click Here to send this discussion to a friend

Goodbye LLC (by DJ [VA]) Posted on: Feb 10, 2024 9:59 AM
Message:

Did you read the Email from Mr landlord yesterday? About the new requirements for all registered LLC's.

What are you all doing in response to it?

I had already decided not to renew My state registration this past November - knowing the "protection" was

Minimal at best. And, honestly, I wasn't holding all the meetings & documenting them as required - and don't want to be bothered with it.

I had registered a DBA (Doing Business As) with my city before I ever got the LLC. That allows

Me to legitimately use a business name as an "Alias".v

Still keeping the separate bank accounts & everything else the same, so no change to daily operations at all. --70.158.xxx.xx




Goodbye LLC (by Ken [NY]) Posted on: Feb 10, 2024 10:11 AM
Message:

If the property remains in the LLC name and you let the state requirements lapse you will have a problem with the title company when you sell it --74.77.xx.xx




Goodbye LLC (by Jason [VA]) Posted on: Feb 10, 2024 10:25 AM
Message:

As a sole proprietor, I’ve never felt the need to form an LLC as it wouldn’t be anything more than a false sense of security anyways. Aside from making my business sound more professional, it wouldn’t offer any other advantages. --71.63.xx.xx




Goodbye LLC (by Richard [MI]) Posted on: Feb 10, 2024 10:51 AM
Message:

I did not see anything regarding if this applies to trusts or land trusts.

Any idea if it does? --75.7.xx.xx




Goodbye LLC (by S i d [MO]) Posted on: Feb 10, 2024 11:04 AM
Message:

I must have missed that one. Anyone know where we could find the info?

--184.4.xx.xxx




Goodbye LLC (by RB [TN]) Posted on: Feb 10, 2024 12:23 PM
Message:

Ditto, Jason VA.

One part of the monster I never fed.

--69.130.xxx.xxx




Goodbye LLC (by DJ [VA]) Posted on: Feb 10, 2024 12:44 PM
Message:

I was thinking how we all need to learn from Ray in PA about trusts.

He uses them a lot --174.213.xxx.xxx




Goodbye LLC (by Scott [IN]) Posted on: Feb 10, 2024 1:03 PM
Message:

Same as Jason. I've always represented myself in court, and I would be forced to hire a lawyer to represent an LLC. Two appearances in court for each eviction. --107.141.xx.xxx




Goodbye LLC (by Richard [MI]) Posted on: Feb 10, 2024 1:36 PM
Message:

Looks like trusts might be exempt.

Google "does corporate transparency act apply to trusts?" and read the info they give on this subject. --75.7.xx.xx




Goodbye LLC (by NE [PA]) Posted on: Feb 10, 2024 1:57 PM
Message:

So I guess this info on your tax return isn’t sufficient ? What a joke. --24.152.xxx.xx




Goodbye LLC (by WMH [NC]) Posted on: Feb 10, 2024 2:01 PM
Message:

Our ownership of our LLCs is required info with our state - anyone can look us up. And then go to the tax databases and look up our properties.

We using ours strictly for convenience (bank accounts and such, and the EIN required to open them are registered with the IRS already) and for estate purposes.

For us, it's just another form to fill out... --173.28.xx.xxx




Goodbye LLC (by NE [PA]) Posted on: Feb 10, 2024 2:07 PM
Message:

Go ahead and prep the paperwork, but I wouldn’t be in any rush to pay or file anything before the end of the year. A lot can happen by the end of December in the circus known as the American government. Remember RRP? Yeah, we don’t hear about that much anymore either.

What about creating a trust to be the beneficiary of the LLC? Or all of your LLC’s? --24.152.xxx.xx




Goodbye LLC (by Mapleaf18 [NY]) Posted on: Feb 10, 2024 4:33 PM
Message:

In New York state there's a separate form and fee to fill out if you have and LLC every year with your taxes... this is on top of all the fees you have to pay to get an LLC and all the advertising requirements that no other state has.

Reduced liability not so much-- was never expecting that.

Will be looking into a trust to put the properties into though. --64.246.xxx.xxx




Goodbye LLC (by WMH [NC]) Posted on: Feb 10, 2024 5:46 PM
Message:

Scott/IN don't be too sure about that court bit. I was always told that was the case - LLC needed a lawyer for evictions - which kept us from forming one for a long time. Then for some reason I happened to hear from someone - I think our attorney at a closing - that that wasn't true, so I called the State Board of Corporations and asked. They said if you are a managing member you could represent the LLC in Small Claims court. In fact anyone can who "has direct knowledge of the facts of the case" so I could send my son, for instance, if he could swear to his knowledge as a fact. It even says that on the actual claim form itself, just not clearly.

IF it went to "Big Court" then I'd need a lawyer but I'd hire a lawyer for that regardless.

FWIW and YMMV - check your state laws. --173.28.xx.xxx




Goodbye LLC (by 6x6 [TN]) Posted on: Feb 10, 2024 7:51 PM
Message:

I don't have to worry about LLC's, but Ken makes a good point.

I would also like to know how this affects land trust, especially if an LLC is somehow involved with the land trust? Perhaps Ray will know?

NE, is there anything in government that isn't a joke?

Another fine example why we should keep things simple. Sometimes we cause our own problems trying to solve them. --73.190.xxx.xxx




Goodbye LLC (by Ken [NY]) Posted on: Feb 10, 2024 8:05 PM
Message:

WMH- we have the same requirement here as far as have to hire an attorney to do an eviction,several of us used to just do the eviction in our personal name,bet i got away with it for 15 years.Now in the city courts they have a do gooder organization there to help tenants and first thing they do is look up ownership. they have made evictions so difficult i hire an attorney anyway and since i dont do ghettos anymore my evictions have dropped off dramatically anyway --74.77.xx.xx




Goodbye LLC (by 6x6 [TN]) Posted on: Feb 10, 2024 8:32 PM
Message:

Sid, from the web:

www.fincen.gov/beneficial-ownership-information-reporting-rule-fact-sheet --73.190.xxx.xxx




Goodbye LLC (by tryan [MA]) Posted on: Feb 11, 2024 10:25 AM
Message:

I kept the free'n clear in a S corp. Always did my own evictions. Never questioned in court.

One of the county courts required a lawyer for filing ANY evictions. I pushed back on this tell the clerk "This process can not be SO complicated A TAXPAYER CAN NOT NAVIGATE IT!". She let me file.

Paper tigers ... all of them! --198.168.xx.xxx




Goodbye LLC (by WMH [NC]) Posted on: Feb 11, 2024 10:30 AM
Message:

Our Clerk of Courts in one county regularly gave out law and notice advice to landlords - against the rules, and her advice was factually incorrect - but we were newbies and listened.

As we got better at LL'ing the filings went down (imagine that!) and I also learned to just nod and say yes to her to get my papers filed.

KNOCK WOOD haven't had to file in years and I bet she's retired or dead now. --173.28.xx.xxx




Goodbye LLC (by NE [PA]) Posted on: Feb 11, 2024 11:07 AM
Message:

The scamdemic should’ve taught ALL OF US that it’s ALL paper tigers, but yet here we are. --174.240.xxx.xxx




Goodbye LLC (by Ray-N-Pa [PA]) Posted on: Feb 11, 2024 8:41 PM
Message:

I tried to see loopholes in this and I can't. I thought maybe making a small non-profit a (c)6 to work around but nope you need a (c)3.

So absent of that I have been rethinking how to structure out my LLCs. I still have one without much cash that only does property management. That limits my risk in the property management field as I have such a small amount of cash in that LLC. I use it primary to generate a small active income so I can open up a Roth 401(K).

As for using my land trust, in the past I would name the LLC as a beneficial interest. I think it will make more sense at this point to list it as a the trustee instead of the beneficial owner.

This doesn't get around the registration requirement, the FINCEN requirement has been around for a few years - it has been the banks reporting this data.

There are about 33.3 million small businesses in the US. There are another 3 million new businesses annually. Those are some huge numbers - ever wonder WHO is going to over see that data? That is the wrong question - I believe the question should what is going to over see that much info. AI, I believe is the answer.

Much of this data is already out there - but with the IRS. I am sure it is only a matter of time before an opppps occurs and all the info that is needed to start that business will be out in the dark web somewhere. So I am not that happy about the requirement, but it only makes the need for land trust that much more important.

Folks, this should be a tool in your tool chest. There are lots of reasons to have them. Privacy, taxes, financing and estate planning are the biggest reasons. But having a property in a land trust allows you not to lie when you say, I am not the owner - I manage the property. It is 100% true.

--24.101.xxx.xxx




Goodbye LLC (by zero [IN]) Posted on: Feb 12, 2024 7:47 AM
Message:

I vote for Ray to be a presenter at the con focusing on land trusts.

Either that or he is invited to dinner with me and the wife to discuss them a little more in depth.

Why not both? --107.147.xx.xx




Goodbye LLC (by Jim in O C [CA]) Posted on: Feb 12, 2024 8:29 AM
Message:

I never did a LLC. In California annual cost is $800 per LLC plus if you don’t follow all the rules it is worthless. --146.70.xxx.xx




Goodbye LLC (by DJ [VA]) Posted on: Feb 12, 2024 10:59 AM
Message:

I'm with you, zero.

If he doesn't present, may I join you at that dinner.

Maybe he can do a "round table"?

What do you think Ray / Jeffrey?

Maybe this idea needs a new thread.

Ray has told me a few times about the benefits of trusts. Maybe it's time to finally implement some. --71.82.xxx.x




Goodbye LLC (by WMH [NC]) Posted on: Feb 12, 2024 11:10 AM
Message:

Ours is less than $300 per year, maybe a lot less, I forget. But as I said we never used it to hide ownership: it's so easy to find the members of the LLCs and then to find the properties the LLC owns. But in a legal case, they are then going to bump into the Trust that owns the LLCs. Might be helpful, might not. --173.28.xx.xxx




Goodbye LLC (by zero [IN]) Posted on: Feb 12, 2024 12:15 PM
Message:

Well now we have three people for dinner.

It's so nice of Ray to do this. Won't he be surprised when he checks back in!

Looks like I am going to be using all those star cocktails. --107.147.xx.xx




Goodbye LLC (by Ray-N-Pa [PA]) Posted on: Feb 12, 2024 12:32 PM
Message:

I learned from Randy Houghs, Bruce Norris and Ward Hannagan. Randy and Ward have courses you can purchase. Randy has a choice between having him set them up or you getting a course and a template.

So that is one level, learning how to set up the land trust themselves - but the real money is is how to use them to make you money, avoid taxes and plan your estate. --24.101.xxx.xxx




Goodbye LLC (by Ken [NY]) Posted on: Feb 12, 2024 2:03 PM
Message:

I had a house in a trust and was playing games with the city it was in, house was in a trust with a LLC as trustee. the city served me but because they were unfamiliar with trusts they had the paperwork incorrect, after i was served incorrectly i sold it to someone else so when i went to court with my attorney the city attorneys admitting to serving me incorrectly so the case was dismissed and because i got it sold they couldnt serve me again so in this case the trust saved my butt --74.77.xx.xx




Goodbye LLC (by Jeffrey [VA]) Posted on: Feb 13, 2024 8:58 AM
Message:

Ray is right, Randy definitely knows how to use trusts to your advantage. I will invite him back to speak at this year's Convention and also do a round table Q&A. --72.252.xxx.xxx




Goodbye LLC (by Ray-N-Pa [PA]) Posted on: Feb 13, 2024 7:55 PM
Message:

He will provide the "legal way" of doing running the trust, then you can ask him off-line and ask him if there is "gray areas" that he can cover to stream line a specific process.

For example he has forms that allow you to buy or sell beneficial interest in any land trust. You wouldn't be buying real estate - you would be absolutely controlling it. Owning is alright but controlling is better as it reduces your risk --24.101.xxx.xxx




Goodbye LLC (by zero [IN]) Posted on: Feb 14, 2024 8:45 AM
Message:

Great info about having Randy be a presenter!

Ray, dinner is still an option. --107.147.xx.xx



Click Here to send this discussion to a friend
Report discussion to Webmaster


Reply:
Subject: RE: Goodbye LLC
Your Name:
Your State:

Message:
Goodbye LLC
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: