Lender · Windsor, CO · Member since 2016 · 61 posts · 15 votes
Looking to setup an LLC for a property I have under contract, and for future properties. One main reason is due that my father in law is helping on this purchase. Suggestions for good attorney in Northern Colorado would be greatly appreciated. I assume it would be best to setup an LLC with an attorney, as opposed to doing it myself online (legal zoom, etc), correct? Thanks! Dan
Westminster, CO · Member since 2016 · 33 posts · 8 votes
10y
You might consider speaking with a CPA too. Having the right business structure can save you a huge tax headache down the road. They'll be able to talk you through how you will split profits/losses with your father-in-law and make sure everyone's asses are protected as well.
I'm actually in a very similar position with my future father-in-law. I'd be very interested to know what you settle on. Keep me posted!
Real Estate Agent · Boulder, CO · Member since 2014 · 87 posts · 24 votes
10y
I've set up all of mine on my own in ny and Colorado. Man, the Colorado process couldn't be easier. Ny, not so much. Just go to the sos for colorado website. I'm not an attorney, but unless you plan to take a salary as an active employee, an LLC is the best route. You can always change how the LLC is taxed down the road if you change. Disclaimer: I am not an attorney.
Westminster, CO · Member since 2016 · 33 posts · 8 votes
10y
You might consider speaking with a CPA too. Having the right business structure can save you a huge tax headache down the road. They'll be able to talk you through how you will split profits/losses with your father-in-law and make sure everyone's asses are protected as well.
I'm actually in a very similar position with my future father-in-law. I'd be very interested to know what you settle on. Keep me posted!
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
10y
Can you go online and just do it? Sure. HOWEVER, legally you have to do more than pay the SOS and pick a name. Hire a pro and do it right. There is no need to skimp.
My BIL is a CPA up in Loveland that could help. Let me know if you want his info. He's helping me with my S-Corp and my wife's LLC.
full-time CPA & part-time RE Investor · Colorado Springs, CO · Member since 2016 · 102 posts · 46 votes
10y
I am a CPA in Colorado Springs.
Is your father in law going to be your partner or is he just loaning you money to do the deal? If you are the sole owner of the LLC, just set up the LLC online yourself and save a ton of money. Setting up an LLC in Colorado is very simple. If you will have more than one owner, spend the money and have an attorney make sure your LLC agreement spells out the deal properly. That is the real reason to use an attorney, not to set the LLC up with Sec. of State, but to draft a good legal agreement between the owners.
Hudson, CO · Member since 2016 · 30 posts · 5 votes
10y
@Matt M., Could you expand a little more on what legally needs to be done to maintain a LLC in addition to filling out the paperwork and paying online? Thank you in advance!
Investor · San Luis, CO · Member since 2016 · 9 posts · 3 votes
10y
Try these links for applying for your LLC on your own . Very easy to fill out without all the extra expenses . Good luck . https://www.sos.state.co.us/biz/FileDoc.do. http://www.sos.state.co.us/
full-time CPA & part-time RE Investor · Colorado Springs, CO · Member since 2016 · 102 posts · 46 votes
10y
@Kit Dumph - maintaining an LLC in Colorado is pretty easy. Once a year, you will need to file an annual report with the Secretary of State, to keep it as an "active" LLC. You just go online to the SoS's website and pay a few dollars, and type in any changes, like an address change, etc. If the LLC is owned by only one person, that is all you have to do. If the LLC has two or more owners, the LLC will file a federal and state income tax return. That's about it.
Lender · Windsor, CO · Member since 2016 · 61 posts · 15 votes
10y
Michael McDevitt , my FIL is obtaining the loan and fronting the down pmt. He really does not want anything to do with the property. He is helping me get started in investing. I think we will be drawing up a note for the down pmt to pay him back once we close on the property. Do we even need a LLC in this case? I will be basically assuming the bank note, and also paying him back on a personal note for the down payment.
Thanks in advance!
Hudson, CO · Member since 2016 · 30 posts · 5 votes
10y
@Michael McDevitt, that's what I thought. I was asking because it seemed like @Matt M. said there was more to it then that and you would want to "hire a pro and do it right"... Was hoping for a little more info.
full-time CPA & part-time RE Investor · Colorado Springs, CO · Member since 2016 · 102 posts · 46 votes
10y
@Daniel Luedtke, yes I would do the LLC. See a good attorney and tell him/her what the deal is between your FIL and you and have the attorney draft the document(s) to reflect what you want. Be sure to review them carefully, to make sure it says what you wanted.
@Matt M., Could you expand a little more on what legally needs to be done to maintain a LLC in addition to filling out the paperwork and paying online? Thank you in advance!
I'm not a CPA nor an attorney, so I can't give too much advice, etc on this issue. While you can do it yourself, I'd hire someone to look it over to make sure it's set up right. When you are dealing with these kinds of sums, it's good to hire someone.