Entity Structure

[Tom Sylvester]

My partner and I just closed on our first property (a duplex). We are now looking into what type of entity we should create.

We would like to create an LLC to hold the property, but the fees on a multi-member LLC in NY are too high to justify the cost. It is a $500/year filing fee plus the cost of startup.

We were thinking of possibly creating a single member LLC in one of our names and quit-claiming the property into it. Then at a later time when we acquire more property, change our LLC into a multi-member with both of us.

What are people's thoughts on this, or any alternatives?