$5500-$6500 for setting up a Holding Co+LLC - Thoughts?

[Raj I.]

Thanks for reading this post.

I understand that setting up an LLC is not required in RE, and if anything it can be a pain to file returns depending on how you set up your LLC's.

However, I am looking at a couple of properties in 'war zone' areas and out of state rentals and since I have a decent net worth, asset protection is something I have to do.

On Youtube, I found 2 really good Attorneys who have detailed the how and why. I called one of their offices and the quote was for $5500. Here's what you get for it:

1. Holding Company (NV)

2. LLC in home state

3. Potential trust in VA

4. On-call support.

I know BP'ers are prudent and minimalists and I know that you are chomping at the bits saying WHAT!!! Before you proceed to roast me, can you please educate me on how did you get your trust/llc started? If you are in Atlanta, I would love to buy you dinner or meet for scotch/beers and see if we could partner up.

[Jonathan Safa]

To be honest, I don't see the need of setting up an LLC through an attorney these days. Sure there are legal questions to be answered, but with a resource like Bigger Pockets, I feel navigating these waters is a breeze! Setting up an LLC should cost you no more than $1,000 through a company like Legalzoom, which will walk you through pretty much every step of the way.

Firstly, finding attorneys on Youtube might not be the best idea. Calling your State Bar office may prove to aide better in finding a suitable attorney than searching on Youtube. 

I set up a Holding company through Legalzoom and a bit of private research and have found the process to be relatively painless, including filing at the end of year. 

Best of luck to you, though! And remember to take advantage of this great space we are on... Bigger Pockets.