All Forum Posts by: Savannah Wallace

Hi Candice, 
Congrats on this new venture! 

When purchasing a property with another investor, it's crucial to establish a clear and legally binding agreement to protect both parties and avoid future disputes. Two common approaches are creating a Partnership Agreement or forming an LLC.

If you choose to do a partnership agreement, then make sure it outlines the terms of your collaboration, including ownership, profit and loss distribution, responsibilities, dispute resolution, and exit strategies.

Creating an LLC offers additional legal protections by shielding personal assets from liabilities associated with the property, and is generally what I recommend for my clients when doing a partnership. Terms of the arrangement can be outlined in the Operating Agreement, which can limit transfers of membership, include buy-out provisions, as well as include dispute resolution clauses, and outline the roles and responsibilities of each party.

In either case, I recommend working with an attorney to either draft the partnership agreement or create your LLC.



Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hi Frank,

The process of deeding the property into a new entity is relatively simple, it just requires filing a new deed with the county showing the entity as the grantee. A local title company or attorney can prepare this. I generally recommend using a professional to prepare deeds to ensure they are completed properly. While quitclaim deeds are generally used for transactions between related parties, I still recommend using a warranty deed to provide protection from potential legal and financial risks associated with unclear titles.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Depending on the type of mortgage on the property, if you're looking at moving the properties out of your name and into LLCs, then you may benefit from a land trust,t which is a revocable grantor trust. Depending on the terms of the mortgage, transferring the property to an LLC may be considered a sale, thus triggering the due-on-sale clause. However, putting it into a land trust first avoids triggering the due-on-sale clause. Under the Garn-St. Germaine Act transfers into grantor revocable trusts are exempt transfers and will not trigger the due-on-sale clause. The beneficial interest of that trust would then be assigned to the LLC so that you enjoy the asset protection benefits of the entity.

To whichever entity you move the property to, it will be a transfer, you aren't just adding the entity to the deed. I recommend warranty deeds over quitclaim deeds. Quitclaim deeds simply transfer interest without investigating or guaranteeing title validity, which can lead to complications if ownership disputes or liens exist. Warranty deeds provide greater protection from potential legal and financial risks associated with unclear titles. Even though it's going from your name to your entity, I would still recommend using a warranty deed. 


Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Sylvia,

You could set up a corporation taxed as an S-Corp where you are the sole shareholder, sole director, and hold all of the officer positions. There’s no requirement for you to add other people to your board.

That being said, a corporation does come with additional compliance requirements such as annual board and directors meetings. Now, you can have meetings with yourself to fulfill these requirements. But, you can set up an LLC taxed as an S-Corporation and enjoy the same tax features as a corporation taxed as an S-Corporation. LLCs do not have statutory requirements to have annual meetings, however, it is still good practice to document any significant changes such as adding managers or members, changing the business activities, moving states, etc.

Like it has been mentioned in other threads, whether the S-Corporation is the correct tax status for you is going to depend on the nature of your business. I do not recommend holding property in the name of an S-Corporation, so if that is what you are looking at doing, I would not go with an S status, a disregarded entity may be a better option.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

I find that creating names and slogans for businesses seems to be the hardest part of starting a business for my clients. You want something that’s unique, memorable, something that gives some indication as to what you’re doing, resonates with your target audience, and something that hasn’t already been taken.

Leveraging AI tools may be a valuable strategy. These tools can provide a plethora of options and you can tailor and refine the choices with the more prompts that you give it. If you’re operating in PA, you’ll want to search the PA SOS website (https://file.dos.pa.gov/search/business) to confirm your name choice(s) haven’t already been taken. This will also help you narrow down your choices.

Good luck with your new business! 

@Stuart Udis 
Wyoming is one of the few states that provides strong privacy protections for entities filed there. When a Wyoming LLC is listed as the member of an LLC holding real estate, the owner's name is kept off public records. If someone searches the Secretary of State (SOS) website, they will only see the Wyoming LLC listed, not the individual owner's name. Furthermore, Wyoming does not require disclosure of member or manager information in its filings, making it difficult for anyone to determine ownership without extensive legal efforts. This anonymity can deter frivolous lawsuits or claims, as litigants may be less inclined to pursue action if they cannot easily identify the owner. They would have to initiate a lawsuit and engage in discovery, which can be expensive and time-consuming, to determine who the member is. While anonymity does not shield ownership in court proceedings, like you mentioned, it adds a layer of complexity that could encourage litigants to settle for insurance policy limits rather than pursuing costly investigations into ownership.

Additionally, Wyoming LLCs offer charging order protection. If a judgment is placed against an individual owner, creditors cannot force distributions from the LLC. This means that assets within the LLC remain protected from personal creditors, ensuring that it can continue to operate and generate cash flow.

While it's true that maintaining a Wyoming LLC incurs additional costs (e.g., annual filing fees), these expenses are relatively minimal (WY LLCs renew at $62 annually) compared to the potential benefits of anonymity and asset protection.

For these reasons, I encourage my clients to utilize a Wyoming LLC to create an additional layer of separation and to provide them with asset protection.

If you're confident in your ability to ensure that you don't commingle funds from your businesses and can maintain accurate accounting records, then you could utilize one Amazon Business Account for multiple businesses. Like you stated, use separate credit cards for each of your businesses and I think that having the packages shipped to different addresses will also help with keeping each business separate from each other. 



Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hi Jenna,

Congratulations on your first property, that is so exciting!

A well-drafted lease agreement is essential for ensuring that all parties involved understand their roles and responsibilities, helping to minimize potential disputes. It’s important to use a lease agreement that thoroughly addresses all key components, making it easier to enforce if necessary.

While there are many templates available online, I strongly recommend having an attorney either draft or review your lease agreement. It’s crucial to work with someone familiar with your local landlord-tenant laws, as these can vary significantly depending on your location.

A comprehensive lease agreement typically includes details such as the names and contact information of all tenants, the landlord (or property management company, if applicable), and a full description of the property. It should also specify the rental term—whether it’s month-to-month or fixed-term—and outline provisions for renewal, penalties for holding over, and payment details like the rental amount, due dates, payment methods, and late fees.

Other important sections include occupancy rules (e.g., guest limits, pet policies, permitted uses), utility responsibilities, subleasing/assignment terms, security deposit conditions (including how it’s held and returned and who receives the interest), and guidelines for landlord entry. Additionally, a termination clause is vital; it should clearly define the conditions for early termination by either party and outline penalties for breaking the lease. Including definitions of breach and remedies can help avoid confusion later on.

Don’t forget to include any statutory disclosures required by local laws, such as lead paint hazards or mold issues. Other useful sections might address property condition, insurance requirements, abandonment policies, and dispute resolution procedures. While lease agreements can be detailed and complex, taking the time to make them thorough will save you headaches down the road by reducing ambiguity and minimizing disputes

Again, congratulations on your property, and I wish you the best of luck!



Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

I’m unsure as to whether BP provides templates, but there are a lot of resources online, both free and paid, where you can find template promissory notes. 

Begin by determining whether you require a secured or unsecured promissory note. If collateral will be used, ensure the asset description is included and accurately detailed. For notes involving property as collateral, a deed of trust may also be necessary.

Clearly define the payment terms within the document. This should include the total loan amount, the applicable interest rate (and how it is calculated), and the repayment schedule. If prepayment is allowed, this should be explicitly stated. Additionally, specify the acceptable payment methods (e.g., cash, check, ACH transfer).

Well-drafted promissory notes will thoroughly address default, the conditions that constitute it, penalties for late payments, and the remedies should a party breach the agreement. I’ve come across many notes that gloss over this, leading to ambiguity during enforcement, and I encourage my clients to make this section as explicit as possible so that there aren’t any questions, and should there be a breach, there are clear remedies and actions that can be taken. In that same vein, be sure there is also a dispute resolution clause governing how disagreements are handled, whether through mediation or arbitration, and if those options are exclusive.

As with any contract, the promissory note must clearly identify all parties involved using their full legal names and addresses. Both the lender and borrower must sign the document for it to be enforceable.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.