Forming an LLC in Virginia

[Brian Lybert]

I am debating forming an LLC prior to acquiring my first rental property. However, I have not decided which state I want to start in. I live in Virginia (Hampton Roads Area), but have been looking in the Baltimore MD and Atlanta Georgia Areas to invest.

Few Questions:

1) Do I wait till I find my first property before I create the LLC?

2) Does the state I create the LLC in matter? (EX IF I create it in VA, does it matter that Im buying properties in Maryland?)

3) Who do owners of LLCs' recommend working with in forming an LLC?

Thanks in Advance!

Brian Lybert

[Matthew Kreitzer]

Good morning Mr. Lybert:

I am going to somewhat agree and somewhat disagree with much of the information being posted in this thread. Generally speaking, I would not recommend incorporating your business without the advice and guidance of; a CPA, an attorney, and a wealth advisor. The first two are far more important than the last.

The reason to consult with an attorney is that there are dozens of different incorporation styles available to you. An LLC may not be the best way for you to incorporate. Do not rely on articles from DIY websites that promote the quick and easy LLC. Following such advice is likely to lead you down a path of losing out on money. What you want is an experienced Business Attorney to go over the facts of your particularized business plan and risk aversion to determine what is in your best interest.

The reason to consult with a CPA is to get an idea on how the financial side of the equation works, and what tax consequences you may be looking at. Do not continue until you get a clear view of both the legal and tax consequences of any proposed business entity.

As for which state to operate in, that depends on a number of factors not present in your initial question, factors that a trained Business Attorney will go over in more detail with you.

DISCLAIMER: I am not agreeing to be your attorney by virtue of providing this basic, non-legal advice. The Virginia State Bay view this as a legal advertisement, and compliance with the rules are met by my profile on this website. Always have a local attorney for any legal issues, as ALL legal answer are fact specific and local rule specific.