Looking for Information on LLCs

[Alyssa Feliciano]

Hi BP community!

Where is a good resource to find information about LLCs? What books/video/people should I look into. I'm considering creating an LLC with a family member and have lots of questions.

I would really like to get clarification around this point. I've heard of some say it's more difficult to get loans if you are applying as an LLC. Is this the case?

Thanks everyone!!

[Andrew Holmes]

@Alyssa Feliciano

There is a lot of generic info available about LLC on the web. There are a million books on the subject but a lot of them are rather generic. What you need to figure out is what are you going to use the LLC for. FLIP/Rental/Wholesale.

Then you have to figure out if you need to setup an LLC with you family member right away or first do a deal or two with a partnership agreement. You can own the LLC and the family member can be a partner. Their interest can be memorialized in a partnership agreement and that can be recorded with the local recorder office to protect their interest if you need. In your case you may not need that if it's a family member.

Reason for me saying this is starting a business is like a marriage. Go on a few dates first before getting married. A lot of time people jump into business and then have to undo the whole affair if thing don't work out. You could so a few deals with a simple partnership agreement and get asset protection by putting it in a single owner llc. This will avoid both of you setting up the LLC together. If you do a few deals and they go well then you will have learned and then you can setup the right entity structure.

As far as a loan is concerned. It is not difficult to get a loan in an LLC. In fact a lot of Commerical lenders and hard money lenders will want an LLC for you to get a loan. Residential (Fannie/Freddie loans meaning residential loans always have a much higher standard to qualify). Also they will not give you residential loan if the property needs work. You will have to go to a hard money or commercial bank and they want LLC's to loan to.