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Updated over 6 years ago on . Most recent reply

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Kusum Chanrai
  • San Francisco, CA
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Texas LLC FORMATION

Kusum Chanrai
  • San Francisco, CA
Posted

Hello! I just bought my first rehab in Houston. I think I need to establish an LLC before I close. I was going to go through Legal Zoom but:

1) It seems to have a lot of "add-ons" that I'm not sure I need. For example, do I need to purchase "operating agreements, EIN and licenses"? 

2) Are there any downsides in simply completing the form on the Secretary of State website? 

Apologies for the basic questions. Any help would be much appreciated. 

Kusum. 

Most Popular Reply

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Ronald Rohde
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
2,160
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Ronald Rohde
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
Replied

You don't "need" an LLC, but it does provide certain advantages for a minimal cost.

The operating agreement is what determines how the LLC is managed, dissolved, distributions, etc. If you're single member, not a lot of necessary changes. EIN is for bank accounts, tax returns, (insurance, sometimes).

If you just do the form, you can register, but it really depends on your goals and concerns.

  • Ronald Rohde
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