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Updated over 7 years ago,

User Stats

398
Posts
147
Votes
Russ Draper
  • Investor
  • Boston, MA
147
Votes |
398
Posts

How important is company history?

Russ Draper
  • Investor
  • Boston, MA
Posted

I have an 10yr old LLC that I used for my cashflow rentals. I have since sold my rentals, and now I am using the money for rehabbing. I have been using private money for the flips thus far, but I was thinking it would be nicer if I could do more of them at a time and get construction/rehab loans for the flips. I know that hard money lenders don't seem to care based on my experience thus far, but I want to know how important it is that a company have a 2+ year history for mortgage or loans.

I ask because my LLC is out of state, is a sole member, and my wife is not on it yet. I wish to rename it, move it to a different state (domestication), change from single-member to S-corp tax status, and add my wife as a partner. But this is all time consuming (3-6mo) and the only purpose to do all this instead of dissolving and forming a new company is to preserve the EIN and credit history. If its not really going to help there then there is no reason to do the work.

What does BP think?  Should I just let this go and form a new company or should I try to save it and the EIN/credit?

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