Forming a seperate LLC for in-house Property Management

[John Hagen]

I'm in a 3 way partnership. Our ownership shares are based solely on dollars invested. Two of us are active partners and the 3rd is not 100% silent but mostly silent. We 2 active partners pitched the idea of forming a property management company to handle all our own properties and pull a little income out for the work we do above and beyond the 3rd partner. The 3rd partner agrees with this idea. We feel that a percentage of gross rents is a good quantifier of the work we are putting in.

My question is, do we need a real estate license to form a separate LLC to manage our own properties? If we did not do the LLC we would not but since we are creating a new company I'm not sure of the needs in Illinois.