Forming your LLC

[Gary McKissick]

New Investor who will be purchasing their first multi-unit (2-4) this year. I had a question about my LLC. A little about my situation, I live in Denver but will be investing out of state in Dallas/Ft. Worth due to a number of factors. I have multiple questions about forming my LLC:

1.) Create in state I live or state I'll be investing in (CO vs TX)?

and

2.) Since I am starting out small do I need to get a Real Estate Attorney to help form my LLC or is it as easy as going to the local county clerk or wherever and giving them the $25ish to form it? I know in CO you can actually do everything online through the secretary of state website. Also, can you restructure an LLC later as my business grows for better asset protection or just create more.

[Adrian Tilley]

I'm no business formation attorney, but I'll take a shot at #2.  You don't "need" an attorney, especially just for formation.  However, depending on why you want an entity, you might need one.  One purpose is asset/lawsuit protection.  For that to work, you need to make sure it's seen as a "real" business and not just a shell.  That means an operating agreement, etc, as well as insurance, bank accounts, etc.  If it's just an empty filing, the Court may find that it's a sham.  Hope that helps.