Ask an Attorney: Your Questions Answered

1099 vs. LLC

Moderator — Wed, 27 Aug 2008 17:29:11 GMT

A job wants me to be a 1099 worker. I know what it means. Want to know if I could create my own LLC an have the company pay my LLC then my LLC pay me. Also would like to talk about me tying all this up in my future profession of Golf.

Commercial Leases, Incorp and Personal protection

Moderator — Wed, 27 Aug 2008 17:25:25 GMT

I signed a commercial lease as a dba about a year ago, I have since incorporated about six months ago. Now I am being sued for non-payment under my personal name for eviction. Can they file a suit for eviction if I am now INC.? Do I have any protection under the INC or do my rights not apply to prior contracts or leases?

LLCs, Mortgages and Personal Names

Moderator — Mon, 04 Aug 2008 03:02:56 GMT

Can a rental property be placed under an LLC but have the mortage under a personal name and still maintain a seperate entity status?

Rental Properties and LLCs

Moderator — Mon, 04 Aug 2008 02:59:28 GMT

I live in Texas and wish to purchase a rental property, with title to be held by my brand new LLC. I can get a very competitive mortgage rate in my own name, but none of the lenders will let the LLC hold title to the property at closing.

However, one bank and one mortgage broker suggested that I take out the mortgage and title in my own name, and then after 30 days, EITHER transfer title to my LLC OR make out a quit claim deed to my LLC.

Q1. Is this good advice? Please discuss both options. (I am aware that its expensive to transfer title).

Q2 Is there any way to ensure that the mortgage seller isn't just giving me a line? Given that most lenders would NOT let me transfer title after closing, I wonder whether it really is okay with the lending institution. I don't want my loan to get called in!

Asset Protected Family Limited Partnership

Moderator — Mon, 30 Jun 2008 21:20:01 GMT

When is it most appropriate to use an Asset Protected Family Limited Partnership?

First Property Purchase and LLCs

Moderator — Sat, 28 Jun 2008 20:27:25 GMT

I am looking into buying my first property. It is a duplex and I plan on living in one side. Is an LLC necessary at this point? Would I have enough protection through good insurance and a good lease?

Is an LLC an appropriate entity to hold solely portfolio assets (stocks, bonds, options, mutual funds) if there is no ''real'' business activity?

Moderator — Sat, 28 Jun 2008 20:23:21 GMT

Is an LLC an appropriate entity to hold solely portfolio assets (stocks, bonds, options, mutual funds) if there is no ''real'' business activity or rental income? Is there a better entity for this? I''m looking for personal liability asset protection and minimizing taxation during generational transfers of family wealth, but don''t want a significant increase in tax paperwork or double-taxation. I live in a state

(WA) with no personal income tax, but which does have corporate/LLC taxation.. Can I hold portfolio assets in an out-of-state LLC and collect capital gains and other passive income without having to register to do business in my State of residence? Also, does giving money earned from my ''day job'' to my LLC for portfolio investment constitute a ''gift'' subject to gift tax rules, or does transferring personal assets into an LLC you control have no particular tax implications?

Mortgages and LLCs

Moderator — Fri, 23 May 2008 18:45:14 GMT

I am a young first time investor in the early stages of setting up my investment strategy. I was talking with a Mortgage Broker today about getting pre-approved for a loan and I told her how I plan on setting up an LLC to hold the property. She then informed me that a fixed rate mortgage does not apply to someone like me who is planning on using an LLC. She said she was going to do some more research and see what she could find, but the rates would probably be higher. This was a surprise to me and I am wondering 1: why that is and 2: what is a good type of mortgage for use with an LLC?

Doing business in multiple states

Moderator — Fri, 23 May 2008 18:43:48 GMT

I soon will be purchasing properties in South Carolina and Hawaii. My other properties are in separate LLC's in AZ. I want to set up a Nevada or Wyoming entity to add an extra layer of protection and use a nominee service for the new entities. Can I do business in both states as a foreign entity? Should bank accounts (to collect revenue) be in Hawaii and SC or in Nevada/Wyoming?

CAN A REVOCABLE TRUST BE MADE A MEMBER/OWNER OF A LIMITED LIABLITY COMPANY?

Moderator — Sun, 04 May 2008 06:09:06 GMT

CAN A REVOCABLE TRUST BE MADE A MEMBER/OWNER OF A LIMITED LIABLITY COMPANY?

Umbrella Policy vs. LLC

Moderator — Sun, 04 May 2008 06:06:49 GMT

Why wouldn't I just get a good umbrella policy rather than go through all the hassle and expense of an LLC? What better protection is an LLC?

Business Expansion from CA to NV

Moderator — Thur, 24 Apr 2008 02:15:04 GMT

What is the proper entity to form for a mobile detailing/mobile oil change business starting in California with the intent to expand into Nevada

Michigan LLC

Moderator — Thur, 24 Apr 2008 02:12:15 GMT

I have two rental properties in Detroit, Michigan (low income area). Which state: Nevada, Wyoming, or Delaware would you recommend to incorporate the properties.

Real Estate in TX

Moderator — Mon, 07 Apr 2008 06:51:03 GMT

We live in Texas and are looking to invest in multi-family properties. Should we get an LLC in Wyoming or Nevada to hold these properties? Or should we get an LLC in Texas? Please advise us on the best entity for holding real estate in Texas. Thank you.

Refinancing and investment properties

Moderator — Mon, 07 Apr 2008 06:49:38 GMT

I have multiple investment properties in multiple states.

I currently hold these properties in a Living Trust, I am looking to more the title in to individual LLC's for liability reasons. How do I transfer the title without alarming the mortgage comapany of a change of ownership ? in which case they can call the loan due ? Should I hold each LLC in the state that they are located ? (Texas, Kansas, Ohio,) Is it dfficult to refinance if the property is held by an LLC ? Regards Steve