I need some direction on Setting up an LLC

[Brad Pierce]

I recently purchased my 1st duplex in Valdosta, Ga. I currently live 30 minutes away in Florida. Do I need to set up my LLC in Fl or in Ga? I plan to grow & buy my next duplex in the 4th quarter of 2018 & plan to add more each year there after. Which type of LLC will be best for me with the new tax plan? Any & all info in very much appreciated. Make it a great day!

[Jeff Kehl]

@Brad Pierce if you do set up an llc, definitely set it up in Georgia. It always works better in the state the property is in. For an llc that just holds a property and passes through to you one of the big national companies like legal zoom is probably fine. They shouldn't charge you more than a few hundred dollars. 

But, if you plan to buy more properties in Georgia I would recommend you build a relationship with a Georgia attorney by having them do it. It's a very easy and inexpensive process. So much so you could easily do it yourself if you're so inclined. 

But don't overlook the value of the local attorney. By spending about the same money you would anyway you will open the door to all kinds of local connections. The local attorneys know all the brokers, agents, lenders, property owners, judges and government officials and by the way, they also know who is filing foreclosure, who has died and is going through probate, who is setting up a new business and who is getting divorced.

By the way, I don't believe you need an LLC for one property. I don't think I got my first one until I had 20+ properties. A lot of people get them just 'because that's what you're supposed to do'. Why do you need it? My opinion is the best reason is to start building relationships with local attorneys and that is only worth it if you're looking to build a fairly large business in that specific area.