All Forum Posts by: Account Closed

@Ari Yenjai

I sent you a PM with contact info for a good corporate lawyer in Dallas.

Here's my understanding, but you should talk to a lawyer who practices in Texas:

If your entity is "transacting business" in Texas, you are required to file an application for registration with the Texas Secretary of State. They don't define "transacting business," but flipping houses almost certainly qualifies.

You have 3 options:

1. Register your Oklahoma LLC with the Texas SoS. This is the simplest option as far as paperwork, but the registration fee is $750. You still need to file your annual reports with the Oklahoma SoS, as well as complying with Texas requirements.

2. Form a new LLC in Texas. This is the cheapest option with respect to filing fees. $300 filing fee.

3. Convert your entity from an Oklahoma entity to a Texas entity. This gives you the advantage of not having to file annual reports in Oklahoma anymore. It will cost you two $300 filing fees and requires a bit of paperwork. The Texas Business Organizations Code Section 10.103 explains how to do a plan of conversion.

Welcome to BP, from another OKC investor. Let me know if you can find that wholesaler offering good deals in the good part of town that don't need much work...

Welcome to BP. There are quite a few OKC folks on here.

I've used them a couple of times. My tenants like them. You can get the tiles as low as $3 a foot, and there is a decent selection at $5 a foot. I like to use it in houses where the kitchen layout won't allow me to just buy laminate countertops off the shelf.

Passive loss limitations may come into play, depending on your circumstances, but the LLC is not the problem - paying yourself (or your company) the management fee is what creates the tax issue.

@Derek Smith

Rental income is passive income and is not subject to FICA tax. The rental income is taxed whether you take a distribution from the LLC or leave it in there. If you pay yourself a management fee, you have converted some of the passive income into earned income subject to FICA.

@Aaron K.

You can self manage without paying yourself a management fee.

I wouldn't bother with a management company llc. If you are the one managing the properties, the llc will not do anything to shield you from liability for negligent management - the injured tenant will just sue you personally. Also, doesn't paying yourself a management fee take tax-advantaged passive income and turn it into earned income?

I think I found your ad... If so, I'd repaint that green bedroom to match the main living areas. Probably the blue one, too.