Self Storage- Establishing an LLC
Working on some Banking requests, will drop a post on LLC's. You can google why do an LLC.
Attached is our LLC Certificate redacted. If your going to do an LLC, get it set up before you start doing all of your contracts, accounts and paperwork, so you don't have to re-do them all. Your Attorney, banker, insurance, contractors, etc will appreciate it. I will talk in general since state by state may be different.
Steps:
1. Go to your Secretary of State website and do a company name search to see if this name is available.
2. Recommend you have your attorney file and name their selves as the "Registered Agent". Your LLC needs to be renewed every two years and paid ($150 here, $500 in another state), or you can loose your company name. Its better for your attorney to do this. Less chance of them missing it.
3. Does not take long to file and get approval. Pretty simple.
4. What's in a name? Keep in mind your LLC name could be named "Jet LLC". DBA (doing business as) Carson Storage Company. You may choose this route if you plan to do several business ventures under the same LLC, but want different names to support that type of business. Example: Carson Towing Company. Preferably put LLC on all paperwork, contracts, signs, etc. This is in prep for any lawsuits.
5. When your LLC is in one state, say Iowa and you plan to do a deal in another state, say Texas; you will need to sign up through the new states Secretary of State as a "Foreign Corporation". Same deal as in "1" above, go on line and see if your name is taken, if not file your name in that new state. This is not an LLC specific issue, but if you plan to operate in several states, you may want to choose an unusual Name to begin with.
Along with a LLC certificate and filing, you will need an Operating Agreement for the LLC. Will have this in a separate post.
Keep copies of these safe in a document directory or email directory, that way you have handy. You will need them each time you do a new banking relationship.
Rely on your attorney to make the below, in case they need to be State specific.
Comments (2)
Hi Henry, with multiple locations, I assume you would have each property in its own LLC. Do you also create a top level company to do marketing under one name and build a brand?
Weina Shi, almost 3 years ago
All under the same LLC. All are in Iowa, except one in Nebraska.
No need for separate LLC's same type of risk under each one. Plus all are fully insured.
The only consideration to separate into different companies might be to sell in the future, but we wouldn't sell the name anyways, just assets.
There are two types of properties, 2 large facilities in large cities; 6 in smaller towns. These would probably have two different types of buyers. But since these would be Asset sales, no need to segregate by LLC companies.
Henry Clark, almost 3 years ago