All I want is an LLC for one property

[Jeff Howard]

Hi,

Wife and I are trying to do an LLC for our one property. Questions...

1. If we rent it first, and then start an LLC, does that mean we have to redo the paperwork with the renter later?

2. Trying to use Legal Zoom...They want $150 for the basic which I think works for us, but then they want...

A. $80 to get the tax id number - Cant i just do that myself?  IRS.gov says so

B. $250 a year for filing my business tax return.  I don't need this if its a SMLLC or Disregarded Entity, right?  You can just file with your individual tax return.  And besides that, if I do my taxes already myself, how hard is it to do a separate tax return on one property.

3. I want the LLC set up so I can get my company name locked in and start using it to rent property.  I am going to be very thoughtful to make sure I do it right. If I do something wrong with the LLC, can't I just fix it? Probably cost some money with an attorney maybe?  - Note, I know what comments that comment might generate, I am not being caviler I intend to get it done now, and once i have it rented and things die down I will go back and double check that I did it right.

Thanks in advance, trying to navigate this.

[Patrick Liska]

Slow down, yes its that easy to do online and form an LLC but do you have a mortgage on the property ? if you do and go to change the Deed to the property to say the LLC now owns it AS @Deren Huang suggested, that could trigger a due on sales clause in your loan agreement. some banks may look the other way and not worry about it, but there may be a chance that if you do that the bank can call the loan note, claiming the property was sold and want the loan paid. but with out changing the deed forming an LLC would be useless for it's protection because the house would still be in your name. then you might as well leave it under your name and get an umbrella policy to protect you as @Account Closed suggested.