Frustration and analysis paralysis

[Jeff L.]

Hi all.

I have 4 single-family rentals out of state (two different states). Currently, all 4 properties are in my name.

I know - I should form an LLC. I have been pondering this for what seems like forever.

Not being an expert in this area, I find myself seeking a trusted adviser, reading these forums, and trying to educate myself on other's experiences. Unfortunately, everyone's opinion is different! Out of fear of making the wrong move, some of us (me) end up doing nothing which is the worst possible thing.

Questions spinning in my mind:

1. Where to form the LLC. I live in CA but my properties are elsewhere. A lawyer told me to set it up in CA. A financial adviser recommended Delaware. Fellow real estate investors suggest Nevada.

2. Do I need a PO Box? Some say do not use your personal residence as the LLC business address. Here in the CA, you must give a physical address to form an LLC.

3. Member-managed or manager-managed? My accountant mentioned something about a disregarded entity.

With some much information and so many opinions available, who's advice is correct?

Sorry for ranting. I'm just feeling a little frustrated, overwhelmed, and in need of advice that I can trust and believe in.

[Lynn McGeein]

Jeff, wouldn't worry about it so much. We thought we did enough research based on all the info at the time and the lawyers we consulted, actually formed an LLC, but then found out too late (this was 2008) that it was no longer accepted practice to transfer properties out of our name to the LLC without problems from the mortgage companies even if we were sole owners of the LLC, and that no good trying to get loans in name of LLC to purchase that way as they would make us get mortgages in our names, anyway, as LLC was funded from our funds. Such a problem that we actually just did away with it and filed amended returns.