All Forum Posts by: Jin Zhang

Has anyone used Prime Corporate Services (PCS)? My partner and I set up a legal entity with them and are considering using their tax services - one time set up fee of $3k and $65/month retainer which includes annual K-1s (2 partnership LLCs) and personal returns for both partners. Seems almost too good to be true. Most CPAs want ~$1k/ filing so $4k in total.

Setting up LLCs for your rental properties can be a smart move to protect your personal assets and provide certain tax benefits. Here are some insights and advice for your questions:

1. Number of LLCs:
   • It's generally recommended to set up a separate LLC for each rental property. This provides a clear separation of assets and liabilities between properties. If one property faces legal or financial issues, it won't directly affect the other. This separation can also simplify record-keeping and accounting.
   • Additionally, California and Georgia have different legal and tax requirements, so having separate LLCs for properties in each state can help ensure compliance with state-specific regulations.
2. Using Online LLC Services vs. Existing Company:
   • You have the option to use online LLC formation services if you're comfortable handling the process yourself. It can be cost-effective and straightforward, especially for a small number of properties.
   • If you have a holding company already established and it's well-suited for holding real estate assets, you can consider using it. However, ensure that the existing holding company is in good standing and complies with all necessary legal and tax requirements.
   • If you're dissatisfied with the company that set up your financial services LLC in the past, it may be wise to seek a different service provider or create the rental property LLCs yourself online. It's important to work with a reputable provider to ensure that all filings are done correctly.
3. Insurance Implications:
   • Moving your rental properties into LLCs may affect your insurance. You should inform your insurance provider about the change and discuss your coverage options. Typically, you'll need to switch from personal property insurance to commercial property insurance for the LLC-owned properties.
   • It's essential to ensure that your LLCs are properly listed as the property owner on the insurance policies to maintain liability protection. Failure to do so could jeopardize the limited liability benefits of the LLC structure.

Before proceeding, it's strongly recommended that you consult with legal and tax professionals who are experienced in real estate and LLC formation in both California and Georgia. They can help you navigate the legal requirements, tax implications, and asset protection strategies specific to your situation. Each state has its own rules and regulations, and it's crucial to ensure compliance with both state and federal laws.

 Set up an appointment with https://www.primecorporateservices.com/

This is what you'll go over with them in the call. It's going to be about $3850 to set it up with them. I do not work for them.