Company/LLC Name ideas

[Sean Delagrange]

Hey Everyone,

Quick question I'd love some advice on. Just bought my first rental property and I'm going to form an LLC and move it over to that ownership. The goal is to purchase more properties over the years mainly as income/cash flow producing investments, with the occasional flip down the road as well.

My question is around the suffix before the "LLC" in the company name. I've seen posts on here about this, but I'm curious what the consensus favorites are (and if there are any that are not advisable or that raise red flags - that will be very helpful). I've seen some people say not to use "investments" or "properties" for fear of lenders not dishing out loans, but I've had really no problem so far and I've been up front that I'm purchasing as an investment property. Would an LLC change that?

Here’s what I’m choosing between, in no particular order. We’ll use XYZ as the placeholder before the suffix.

XYZ Properties, LLC

XYZ Capital, LLC

XYZ Real Estate, LLC

XYZ Homes, LLC

XYZ Investments, LLC

XYZ Holdings, LLC

XYZ Assets, LLC

XYZ Property Group, LLC

XYZ Equities, LLC

XYZ Ventures, LLC

What are your thoughts? I really think “Capital” is clean and sharp, but does it make sense here? I like the others too, but assuredly not every option will be available when I file so I’m just trying to narrow it down.

Thanks in advance!

[Jay Mersfelder]

Originally posted by @Matt Nico: I've been going back and forth with same dilemma about LLC. Thanks for clarification on that.. I'm just starting out with 2 sfh as renter property..would you recommend umbrella insurance with 1 or 2 rental properties. 

Originally posted by @Sean Delagrange:

@Matt Nico interesting, this is the first I have heard of this. Thanks for pointing it out. Do you have a specific real estate rookie show you can point to that talks about this topic and how to avoid that clause? I would love to give it a listen very soon. I know multiple people who have their property in an LLC, so I wonder what they did to avoid it.

Sean,

I am not sure of the exact show, but I know a couple of the most recent shows talked about the LLC thing. I'd start there.

Those "Multiple People" who you are referring to that you know are either costing themselves money by buying properties in an LLC that they dont need (to start out), or they are much larger of a business than you, and need the LLC to put properties in because banks usually cut you off around 10 properties under your own name. To be perfectly blunt (sorry I'm a very direct person), you have not earned the right to have the same problems as the other people you know.

You have 1/10 properties in your own name.... Once you get to 5-6, then worry about it...haha. 

[David M.]

@Jay Mersfelder

What are you trying to post?

[Max T.]

@Sean Delagrange

I say name it after your wife if she doesn’t like it name it after your girlfriend

[Jay Mersfelder]

Oooops

[Scott Winter]

@Sean Delagrange

I just went through this. In the end, I realized that I just wasted so much time figuring out a name. I realized it really doesn't matter. Like @Joe Splitrock said, use DBA if you want to get fancy. I'd say your energy is better spent finding more deals.

When you want to build a national brand, you’ll make enough to pay someone to figure it out for you, or you can just buy out the name you want 😉

[Vinnie Babauta]

@Matt Nico I believe that may be a sole proprietorship but would you have to transfer sole proprietorship to llc?

[Tucker Cummings]

Best advice I can give is don't overthink it. You can always do a name change of your LLC later on down the line. Usually $50 filing fee if you need to.

Originally I was Tucker Cummings LLC. Now it's TC Cummings Property LLC. Just get it done and no biggie if it's not perfect off the start

[Adam Lendi]

@Sean Delagrange

Hey Sean! I'm going to open this with my disclaimer... I am not an attorney, tax attorney, or CPA. Definitely consult with yours before getting started.

My two cents... I think it is a very good idea to hold your investment properties in LLCs. The thought being, if tenant at Property A, LLC Sue's over damages at Property A, so long as you have structured it properly and have not commingled, the only thing that risk is the holdings of Property A, LLC.

There are a ton of considerations and you need to make sure you are doing things the right way. Let's start at the top. first and foremost, you are probably going to have a very tough time qualifying for a mortgage in your new LLC which has no tax history. The majority of us get a mortgage in our personal name and then quitclaim deed the property to our LLC. Has mentioned in other comments, this can trigger a due on sale clause, as a quitclaim deed does transfer the title out of your person's name, as a sale would. That said, I don't know any investors who this has happened to yet and everyone pretty much does this. This does mean though, that the investor could demand you either quitclaim back to your person or if they trigger the due on sale, you would need to refinance, as your person.

For the LLC to be worth the paper is written on, it must be an independent entity from your person. This means it needs to have its own tax ID (EIN) and bank account. Do not commingle any of your personal money with that business bank account. The only things you can legally do are inject money to support the LLC if the company is not performing and take distributions in a manner which follows your operating agreement. Transfers in and out of the bank account to your personal account can pierce the corporate veil and expose you to liability in a lawsuit.

To get a bit closer to your original question, let's again consider the liability protections of the LLC. If you hold multiple properties in the future, you will want each one to be in its own entity. Your LLC names typically won't be public facing and most of us aren't super creative when we form them. I use the property address or the street name (i.e. 123 Main, LLC). As I mentioned before, to reduce your exposure to liability, you probably won't want multiple properties held in the same LLC, since they can all be considered if damages are awarded. There may be certain tax advantages available someday for you to form another entity to sell management services to your other properties (CPA). This would be your chance to pick the pretty forward-facing name you'd want the public to see.

[Nick Rutkowski]

@Sean Delagrange

I like something with a little comedic twist. Like:

Homes, Tenants, Repairs LLC

Deep Pockets Capital

It Broke Again Construction

Don't Sue Me LLC

Happy Landlord Association

Lunch Money Capital

None are trademarked but if you pick one of these let me know. I need bragging rights.

[Joe Splitrock]

Originally posted by @Nick Rutkowski:

@Sean Delagrange

I like something with a little comedic twist. Like:

Homes, Tenants, Repairs LLC

Deep Pockets Capital

It Broke Again Construction

Don't Sue Me LLC

Happy Landlord Association

Lunch Money Capital

None are trademarked but if you pick one of these let me know. I need bragging rights. 

"Deep Pockets Capital" is the winner, because of course the purpose of any LLC is to let people know how rich you are... "It Broke Again Construction" would be great for a construction company, because who doesn't want to work with a contractor who has problems with things breaking. And finally, I am sure the judge would find humor in "Don't Sue Me" as they award a judgement to the tenant. Don't get me wrong, you are clever, but you are missing the point of an LLC. The purpose is to shield liability, not crack jokes. When you are involved in litigation, these jokes come off as arrogant, not funny.

[Nick Rutkowski]

@Joe Splitrock

Thanks Joe, your knowledge is unmatchable. In your experience in court, how has your business name effected the verdict?

[Nick Shri]

@Sean Delagrange Do you work with a CPA? S/he can easily guide you with your LLC formation/questions. Many have already suggested rightly, if you buy under your name and then move to LLC, the bank 'can' call the note. I quoted the word 'can' because that is the legal process. Smaller banks tend to go easy and they have a way around (that is, if the bank holds your note vs sending Fannie/Freddie), and the bank will not call. But check with the bank in advance of borrowing. Ask them bluntly if they would have issues if you move under LLC. The bank 'may' suggest to buy directly under LLC, your loan may be quarter or half point higher but at such low interest rates I doubt that small difference would break your deal.

In other words, there would be banks willing to let you move or buy directly under LLC. Back to your original question - name of your LLC doesn't really matter unless you plan on creating a Brand. You could always have a DBA, have you looked at business licenses posted at any fast food chain restaurant? They normally show ABC Company, Inc/LLC DBA McDonalds! Brand is still McDonalds in this case.

Best to you!!

[Account Closed]

@Sean Delagrange I name mine after the project in the case I actually need an LLC. I do not use them for single investments. I usually use them when there are partners, complex agreements or some sort of significant liability issue that can be bifurcated from me as an individual.

You will get a lot of glib answers on this topic such as "you don't need an LLC" from this post. And most likely you do not but best to explore with a trusted advisor or attorney as to what you're trying to protect by setting up an LLC. If it's something that going to go back to you individually anyway just save yourself the time and do not form one. In most cases e.g. financing, you're going to be personally liable anyway.

Hope this helps!

[Sean Delagrange]

@Adam Lendi so is it not possible to have one LLC for this initial property, and if I purchase another one to move it into the same LLC and get an umbrella policy over both?  Is the umbrella policy not designed to protect each individual property from each other? If somebody slips and breaks their hip in property 1, could the umbrella policy make it so that only property 1 could be sued, and property 2 could not be touched? Making sure I understand that right because I'd love to avoid getting new LLCs every time if I do decide to go that route.

[Adam Lendi]

@Sean Delagrange

You are absolutely within your right to put multiple properties under the same LLC. To build on my earlier point, some investors do choose to group properties together under individual LLCs. The consideration is that a claim could expose all of the properties in that entity.

If you are looking to purchase a few residential rental properties, a great structure would be to put each in its own LLC and then have an umbrella policy for your person. That structure protects you from any claims that extend beyond the LLC. You wouldn't need an umbrella policy for each one.

[Steve Vaughan]

I have 4 LLCs, but none for houses and all purchased with the LLC day 1. All names reference the street in some way or the building's nickname. I'll bundle up to 2 sister properties per LLC up to $1M in total asset value. Dont want to have to complete Sch L or M at tax time.

If the liability risk as so high with houses,  why can ins co's offer me $300k-$500k (commercial $2M) in coverage for $10s of dollars per month?  Then another mil or 2 umbrella for a few more tens of dollars per month? 

Speaking of insurance, I don't see it mentioned.  Check with insurance providers how an entity for resi property will affect your rate and coverage.  Check about title insurance as well if you plan to transfer it later. 

Transferring/conveying from your name (presumably with a QCD) to an entity will show in the title chain and negate your asset protection anyway IMO.  Any bonehead can see what you did, but now your title insurance could be at risk. 

If you have a non-spousal partner, an LLC for a house may make more sense, but also visit the benefits of TIC while you review the benefit and risk and pain of having someone to answer to.

[Joe Splitrock]

Originally posted by @Nick Rutkowski:

@Joe Splitrock

Thanks Joe, your knowledge is unmatchable. In your experience in court, how has your business name effected the verdict?

I operate as a sole proprietor, so just my personal name. Business name should normally have little effect on the verdict. That being said, if one of the parties involved appears cocky or arrogant, that affects credibility of the individual. That was my point on keeping an LLC name boring.

[Nick Rutkowski]

@Joe Splitrock

Oh okay, you make a great point. To be honest, my LLC names are boring names. My construction company is Through The Roof Construction and my holding LLC is Through The Roof Homes. Kinda generic but a little comedic. Not too over the top.

[David M.]

@Sean Delagrange

Umbrella policies, like any other Insurance policies, insure a person/entity. So, if you have multiple LLC's, each LLC will need its own umbrella policy (assuming thats what you want). That's one of hte arguments for putting a few properties under one LLC, or similarly just holding under your personal name. That one umbrella policy now goes over and above the base policy on your rentals, your car insurance, your personal home, etc...

So, no the umbrella policy is not designed to protect one property from each other.  Its designed to provide additional liability coverage "over and above" an existing base coverage, e.g. a homeowner's or landlord policy.

To limit the liability between properties, that's where you need the LLC since it is treated as a separate legal entity. Like its been said above, you just have ot operate it as a separate entity. Be sure to get commercial financing which you would personally guarantee but its better than purchasing personally then changnig Title as I've explained before.

Good luck.

[Joe Splitrock]

Originally posted by @Nick Rutkowski:

@Joe Splitrock

Oh okay, you make a great point. To be honest, my LLC names are boring names. My construction company is Through The Roof Construction and my holding LLC is Through The Roof Homes. Kinda generic but a little comedic. Not too over the top.

That is a harmless name. A construction business is a little different than investment property. You will usually operate under the LLC name for a construction business. For a rental property, you typically hold properties in an LLC and often operate under a different name. If you have enough properties, you usually have multiple LLC, which is why it is typically not your operating company name.

[Nick Shri]

@Sean Delagrange Look at Series LLC (that's an umbrella/parent LLC and can have infinite children LLC under it).

[Jaston Robinson]

Originally posted by @Matt Nico:

Originally posted by @Sean Delagrange:

Hey Everyone,

Quick question I'd love some advice on. Just bought my first rental property and I'm going to form an LLC and move it over to that ownership. The goal is to purchase more properties over the years mainly as income/cash flow producing investments, with the occasional flip down the road as well.

My question is around the suffix before the "LLC" in the company name. I've seen posts on here about this, but I'm curious what the consensus favorites are (and if there are any that are not advisable or that raise red flags - that will be very helpful). I've seen some people say not to use "investments" or "properties" for fear of lenders not dishing out loans, but I've had really no problem so far and I've been up front that I'm purchasing as an investment property. Would an LLC change that?

Here’s what I’m choosing between, in no particular order. We’ll use XYZ as the placeholder before the suffix.

XYZ Properties, LLC

XYZ Capital, LLC

XYZ Real Estate, LLC

XYZ Homes, LLC

XYZ Investments, LLC

XYZ Holdings, LLC

XYZ Assets, LLC

XYZ Property Group, LLC

XYZ Equities, LLC

XYZ Ventures, LLC

What are your thoughts? I really think “Capital” is clean and sharp, but does it make sense here? I like the others too, but assuredly not every option will be available when I file so I’m just trying to narrow it down.

Thanks in advance!

 Sean,

You do not need an LLC with 1 property. If you'd like to create it go for it, but I would absolutely NOT move the property into the LLC. It could trigger a due on sale clause. If you are worried about liability with the home being in your name, don't be (yet). When you are a small organization you usually don't have anything worth taking. Continue to put properties in your own name as this gives you the best interest rate and terms. As you grow I would look into an "Umbrella Policy" which actually protects you just as well if not better. Listen to the real estate rookie shows. They talk a good amount on this subject.

Also for your LLC name, here are thoughts:

1. If you are planning on going to be a full time real estate investor now, start telling people what you are doing and think of a good name. As an example, mine has "Estates" on the end. People love it.

2. If you do create one, I created a branded logo and named my LLC. I have T-shirts, Business cards, and my truck is a very specific color which everyone knows me by. To everyone who know me, I am "The guy who knows real estate"

Hope this helps,

Matt

 Matt, 

Thanks for the awesome advice. I really got something from this. 

[George Mastrosavas]

Talk to your attorney to see what names are available before making a final decision.. Also an LLC is only good for TAX purposes once you get there. Start with a PUP policy (ask you insurance agent). once you get to five properties then consider an LLC. Hope this helps and enjoy the journey!

[Jim K.]

I actually considered Baba Yaga Rentals, LLC, before the John Wick movies came out. I'd have my little landlording joke, who would know? Thankfully, wiser minds wholly unimpressed with my cleverness overruled me.

[Jason Mak]

Originally posted by @Eric Goldman:

When it comes to LLC's I usually make it easy, lets say the prop address is 112 arch st. My LLC is 112arc LLC.

It does not need to be fancy. I have an LLC that I just use with fix and flips, that one is something better sounding. Check with your state and see what available.

Hi Eric - I do the same thing - the problem I have is when I sell the property and do a 1031 exchange, then I need to keep that LLC for the new property which is really confusing since the name of the LLC is now referencing the street address of a property that I no longer own or am affiliated with.

Do you know if you can change the names of LLCs?