All Forum Posts by: Ronald Rohde

If you have no assets to protect I certainly wouldn't bother with an llc. For a single member llc With no assets to protect I definitely wouldn't pay a lawyer, you can easily do it yourself. Also See what you annual state filing fee for a llc is as a starting point

We're not regulated by the SEC so I'm not 100% positive of all the rules. If it's money from family or friends, that's different than pooling funds. Regardless, if you go down that path, definitely meet with a Texas attorney that really knows real estate and lending. 

You might want to think about the legal aspect as well. What are your landlord legal responsibilities? What are the tenants rights? Your needs might change in the future. You could get hurt or disabled in some way and need prop management. I think any deal needs to have room for management and if not needed, then icing on the cake.🤑

@Peter Schuyler that would be substantially helpful. just sent you a PM/invite. 

@Brandon McLean @Curtis J. what part of east dallas?? are you actually building a new house or gutting the current one?! some of the ones in SOME parts of east dallas can go both ways! haha. I only know because i've been looking.... 

@Gina Baker  Gina, with all respect, please talk to both a lawyer and a CPA.

It is very easy to form an LLC in both Maryland and in Texas. If you don't have a place to receive mail, then you can hire a company like InCorp Services (about $100 per year) to represent the LLC. This is who will receive things like court documents and subpoenas on your behalf. You will have the choice of creating one LLC for each state, or one LLC owning properties in each state.

If you have a Texas LLC that owns the property in Maryland, then you will need to register in Maryland as a "Foreign Limited Liability Company" with an additional $100 filing fee.

In Texas, it's a bit more expensive.  Registering a new domestic or foreign limited liability company runs $750.

So from a filing perspective, doing it yourself, you're looking at $950 out of pocket right off.

That part is easy.  Here's the hard part....

Texas does not have an individual income tax.  If you hold the properties in your personal name, you will need to report the Maryland portion of your income on a non-resident Maryland income tax return once you move, but you will not be taxed in the State of Texas for personal income (you still have to pay Federal income tax).

HOWEVER, if you have an LLC, that LLC will be subject to a Texas Franchise Tax.

I would hire a CPA/Lawyer that has Multi-State Tax Experience and talk with them about this.  Texas is tough and aggressive on Franchise Tax audits.