Creating an LLC before my first flip

[Harrison Krause]

Big question if there’s any real estate attorneys on here willing to help me out with a couple questions. So my friend and I are honing in on generating our first wholesale flip. Still getting our process down and just now starting to look at some serious options to wholesale. We wanted to start an LLC to have an official company name. Something to give us a little stature and possibly more credibility by having the name of a business behind us. What category of LLC do we need to look at? We want to market ourselves as “property investors.” Is there licensing or any requirements to label ourselves as real estate investors and open an LLC. We do plan on expanding and working to build a portfolio and eventually have outside investors investing into that portfolio. I think based off of my knowledge that as long as we’re not facilitating deals as realtors and stick to strictly wholesaling (even though I’m in the process of attaining my real estate license now) that we should be fine with a basic LLC and business license. Any and all output I would love to hear, criticism please hit me with it I need it. Can’t wait to hear if there’s any advice out there for me! Thank you everyone, can’t wait to make this dream come true!

[Michael Plaks]

@Harrison Krause

I'm not an attorney, so this is not a legal advice.

That said, you have a very cheap way to adopt a business name: DBA - doing business as. Here are the official details from the Florida Department of State:

https://dos.myflorida.com/library-archives/research/florida-information/business/starting-a-business-in-florida/small-business/dba/

You will also need a BTR - business tax receipt - from the city:

https://dos.myflorida.com/library-archives/research/florida-information/business/starting-a-business-in-florida/small-business/dba/

Creating an LLC is a much more complicated and expensive process, for which you might need an attorney, considering that you have a partner. I do not recommend setting it up that early, but feel free to check with an attorney who might disagree with me.

Also, to avoid misunderstanding, do not say "wholesale flip." These are two very different things. What you're looking for is a wholesale deal. When you say "flip", most people assume that you will actually purchase the property.

Good luck investing!