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Updated almost 6 years ago,

User Stats

31
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5
Votes

foreclosing a tax lien as an LLC in AZ

Karen D. Schiano
Posted

Here comes another issue as I am just getting into tax liens. I have an LLC in NM for general purposes which I have applied to register as a foreign LLC in AZ where I am purchasing tax liens, going into foreclosure now and then selling. I thought this would protect me from any suits or countersuits resulting from foreclosing and reselling properties which it would but it appears that in AZ an LLC must be represented by an attorney except in limited circumstances which do not appear to be representing the LLC as a sole member disregarded entity as I am nor an exception for foreclosing tax liens. I do not want to go the attorney route expense and find my way very well with legal matters, reseaching titles, etc and have represented myself well in auto accident suit as plaintiff and in other matters. So does anyone know is the definitive answer that if I bring the foreclosure complaint on a tax lien property as a sole member disregarded LLC, registered to operate in AZ, I must be represented by an attorney?

Then that brings the other matter, I added the name of the LLC to the certificate thinking I would sort out and put in my name the lands I want to keep as personal property and have the others to sell be property of the LLC when I bring the foreclosures. I purchased all out of my personal bank account so no problem did not use LLC funds. As per rules, I could have purchased them from personal account for the LLC but not the other way around. The main name on the certificate is my name because the counties require that it match if using my social security number which is the way the IRS wants as a sole member disregarded entity. So I am hoping no problems. I have to list the LLC because that's what's on the W-9 but I also have a sole proprietorship which hasn't been doing any business for years. I don't know if this has to be categorized as a sole proprietorship if not an LLC? I am extremely low volume and really consider them personal investments, some of which I will sell. Do individuals have investments and sell via internet real estate and it is individual income and not considered a business for tax purposes, but considered personal income? I guess I can check on turbo tax unless someone can tell me...... I'm going to ask them to strike the additional LLC on additional certificates but this first year batch has both names on it with individual name primary. Does anyone see a problem when I do the foreclosure? I can't have two accounts as per county rules because my LLC does not have an EIN so I was going to sort out ownership bring the foreclosures in either my individual name for the personal properties or the LLC depending upon my end intention but now I believe I need an attorney as an LLC soI won't use the LLC for these land investment purposes. I guess I can just tell the county the sole member (me) LLC is assigning the certificates to me the individual and give a formal letter if need be if not listing the LLC along with my name on the certificate will be an issue in court. Yeah, that's it, may have answered that question, but the other questions remain.....thanks.

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