All Forum Posts by: Mandy Morrow

Yes I DO need a lawyer to cover my butt. But the below is a good read.

From : http://en.wikipedia.org/wiki/Nevada_corporation

A Nevada Corporation is a corporation chartered under the laws of the U.S. state of Nevada.
Nevada, like the state of Delaware (see Delaware corporation), is well known as a corporate haven. Many major corporations are chartered in Nevada, particularly corporations whose headquarters are located in California and other Western states.
The reason for this sort of a choice is that, in general, in the United States, a corporation which operates in more than one state (or country) has a particular state where it is incorporated, to which it is a domestic corporation. In all other states where it operates and has filed papers to be allowed to operate, it is a foreign corporation, and the requirements for corporate governance in the case of a lawsuit do not use the law where the corporation is sued, but instead, the law where the corporation is a domestic corporation. Nevada offers for US citizens or residents certain advantages over Delaware (while most US aliens prefer Delaware over Nevada).

Mitch-
Thank you very much that makes sense and you saved me from sitting and managing an LLC for 2 years. I see you are in SoCAL too and would love a referal to an asset protection attorney if you feel comfortable refering to me. If not, no hard feelings taken.

Will-
We are foreigned filed here in CA, I understand why it doesn't work if we are not. We incorperated in Nevada because if sued we were told we would be figthing with Nevada Law on our side, instead of CA law which is more consumer friendly.

Jennifer-
I do have a CPA, she recommened I get an attorney hahah. But I haven't found an attorney who deals with incorporating in Nevada and foreign filing in CA. I've just been going down the phone book, referals are welcomed!

Thank you all.

Waiting to get more properties before forming an LLC accomplishes what? The LLC isn't there to protect your rental properties, it's to protect your personal assets such as your residence. Of course, if you don't have any personal assets, except for the rental properties, then, yes, an LLC doesn't have much to protect.

Mr. Kronowit-
First, thank you for taking the time to reply.

I have question, I have heard that I should have my LLC BEFORE purchasing my first propertry, is that correct? The idea being that the LLC would have the property from the beginning and offer protection.

We have an S Corp already for our business. I'm sitting here thinking that before I can even think of purchasing I should have an established corp (min 2 years) before buying.

Is it better to go buy the home then put it under an LLC?
Is the S Corp enough to protect our business and would the LLC provide more protection should the property go sour so that no one could go after the business?

Your input is greatly appreciated.

We had similar experience with the Rich dad coaching people, they wanted us to pay out a good sum of money to have someone mentor and teach us how to do everything you learned in the Rich Dad Series. We did a lot of reading of reviews to find out that Robert has nothing to do with that business or group, it's like he just sold the name or rights to use "Rich Dad" to them.

Sounds like the webinars did the same thing, it's probably not Robert.

That makes sense, I see that. It's just that Delaware does report to the IRS and Nevada I believe doesn't which can mean less audits.

Thank you for the info I find your posts most helpful in other forum discussions.

Good luck in 2011.

If you find an attorney please refer them. We have been looking for one in CA and everyone we have talked to says you can't incorporate out of state legally. We've hit a wall with CA lawyers, should I maybe find a Nevada or Delaware lawyer?

Bryan - Why Deleware instead of Nevada? Do they have better laws or protection when dealing with RE?

My friend in New Hampshire has done something like this with his businesses. His Corps are in Nevada. He upstreams his positive cash to a LLLP, I didn't even know they existed till he showed me his docs. You might want to look into that.

My husband and I are working living in San Diego but incorperated in Nevada and Foriegn Filed in CA. Just an S corp. We are planning on purchasing a second corp, an LLC, this year for future properties also in Nevada, but that one still needs to be forgien filed in CA, the last Corp we will get will be a C corp in Nevada but with a resident agent. That one will be the holding Corp a management / advertising company, working for the LLC and the S Corp. The theroy being if your businesss or properties look like they are going to make an profit that year you could purchase managment, advertising or consulting services from your C-corp. Therefore moving your money from your left hand to your right hand. It's legal BUT you need to have a really good paper trail and set up you Corps and DBA's correctly. The Nevada corp will not report who the owners are if someone were to sue. The C corp doesn't have to be connected to you and some resident agents don't require the use of your SS# even. If you are worried about the veil being pierced.

My friend makes millions and yet his tax returns will tell you that he only make $20,000 a year.

There's are so many things it's amazing what you can do but please BE CAREFUL and meticulious. Doing this right = great savings, but doing it wrong = possible fraud, fines, and jail time. We are moving VERY slow with this. Trust but verify. Good luck to you!

Hi Just here to learn how to invest with brains this time. We lost two properties at once in 2008 and we are looking to buying again in the next couple of years. I'm here because the best investment I can make is in my education.
Thank you for having this site and to the experienced folks for sharing there knowledge.

If you do get a corp, look into getting it in Nevada or Deleware. Nevada is better. There are no reporting laws in Nevada. BUT READ up on it, if you do it wrong, you could be commiting fraud. Rich Dad Own your own corp. is a good basic start. Also Google Nevada Corp Headquarters.