LLC Formation - Maryland

[Benjamin Seibert]

I know this general topic has been talked about ad nauseam but I couldn't find an old BP article on this specifically. I am about to purchase my second BRRR rental property and am looking to set up an LLC for it (putting both of my properties in the LLC). Because of the coronavirus the local attorney's aren't able to set up a meeting, so I was looking to set up the LLC myself. I'm just looking to set up a simple LLC for holding my rentals. I would like the LLC to be set up correctly to mitigate liability (I know it doesn't defer complete liability and understand its limitations). Is it feasible to set up a proper holding LLC for myself without an attorney or would you recommend seeing an attorney for this?

[Mike S.]

@Benjamin Seibert

The registration of an LLC with a state is really easy and can be done by yourself. However deciding how the LLC should be setup (single or multi members, member managed or manager managed, how should it be taxed) is a strategic decision that need some good brainstorming with an attorney and a tax professional.

Also the most important document of your LLC will be its operating agreement. This should be properly set up with all your specifics in mind and with an attorney knowledgeable of your state laws.