LLC: Form now or in 2017?

[Mark S.]

Looking to start investing in January, 2017 in buy-and-hold rentals with an investor group. I want to create my own LLC which will buy into the LLC that owns each property. I'm looking for form LLC in Kentucky. A few questions: 1.) Does it matter if I do it now or should I wait two months (to avoid any annual fees, etc.)? 2.) This would be a single member LLC. Should I still use an attorney, or would an online service like LegalZoom likely suffice? 3.) Is it worth the expense of renting a UPS mailbox for privacy? Does it matter that your name/address have to be disclosed on original paperwork? Thanks in advance.

[Gord Stevenson]

I am not familiar with Kentucky, but in Arizona it is pretty easy to set up an LLC yourself by following the instructions online and submitting your own forms. Certainly under $100 even if you have to advertise it in a newspaper to finish the process. In Az I don't think there is even an annual fee for LLCs. The most difficult part of setting up an LLC is creating an Operating Agreement which details the rules by which the LLC will operate, and if there are Partners who has what authority, and how assets will be distributed when winding up the LLC etc. For that it is useful to have a template from another LLC to start with. Personally I wouldn't pay a lawyer to set it up. But do check the fees etc for an LLC in your state. It might be different there.