How Do I Create An LLC And Should I Hire Someone To Help Me?

[Erica Wilson]

I know an LLC is not necessary to invest in rental properties, but I've decided this would be a better option for me in the long run. Is it easy to creat an LLC on your own, or would it be wiser to hire someone to assist me? If it's easy, I can certainly do it. But if I'm going to be set up better in the long run if I enlist help, I want to do that. I ultimately want an umbrella to keep my assets under and I'd rather set this up now from the start than have to do it later. What do you all think? I'm in Michigan and I'm not sure of the LLC creation process.

[Drew Sygit]

@Erica Wilson challenges with LLCs:

1) Setting it up correctly.
---Many DIYers enter their own name as LLC agent and their home address. Defeats any chance at anonymity! Using an attorney, CPA or a 3rd party as agent is smarter.

2) Having an Operating Agreement
---Without one, you don't have a viable LLC and highly likely a judge will set it aside.

3) Buying a property in your name to get a FNMA/FHA/VA mortgage, then transferring the property to an LLC via QCD.
---Again, defeats the anonymity of an LLC! You're better off just getting better insurance. 
---DSRC loans avoid this issue.

4) Can't represent your LLC in court
---You'll need to hire an attorney for evictions, Security deposit disputes, etc.

If you need a business bank account, you can open one with a DBA, which you can get at the county.