First Time Investor Setting Up an LLC

[Jay Jones]

I have several questions about setting up my LLC:

1. Do I need an attorney’s help?  I have friends who set up it on their own, ones who used Legal Zoom and others who enlisted an attorney.

2. My rental property is in another state which has no renewal filings or fees after the first year. Is there any reason why I shouldn't set my LLC up in the state where the property is as opposed to my home state? (Mainly thinking about tax purposes)

3. If I sent up own my own what do I need to know? My wife and I are the only ones in the LLC (not a partnership). Any advice here would be much appreciated!

[Natalie Kolodij]

An LLC doesn't change anything for taxes. It gives you no benefits.

Are you sure about that no fees or ongoing renewals? 

You typically want an LLC where the property is because it's a state specific device so you want it to apply to the asset you're trying to protect. 

If your wife and you are both on an LLC you....most likely do have a partnership. 

There is an exception if you are in a community property state- but otherwise 2 people on an LLC creates a partnership. 

All of that being said. If this is your first rental- what are you trying to accomplish with an LLC?