All Forum Posts by: Shawn H.

@Mindy Jensen, apparently he does drive as these were the tickets he received according to the county site. It might seem petty to deny for these things, but I had not even done a background check yet, just a quick search through the county and a quick look on Facebook. It is amazing what people will post. Thanks

@Bob B., I agree completely.

I feel like these items represent a history of irresponsibility. Is it within my right to deny based on these issues? Thanks for the response.

Do you agree the following are good reasons to deny tenant applicant(within the previous 1.5 years)?

operating uninsured motor vehicle

expired license over 1 year

expired registration

What are some tips to avoid commingling of LLC and personal funds? Separate checking account, credit card... What do I do about internet/cell phone? I use my phone for personal and rental use and deduct a % accordingly on taxes. The bill is paid from one account. Is this commingling? Or a home office deduction? Would these items lower liability protection?

Thanks

@Steven Hamilton II @Hy Schmiedeskamp I spoke with my CPA, it sounds like single or multi member both pass through to personal return. I've been reading, it is recommended, even for single member it's a good idea to have an operating agreement, even though not required by Illinois. Also, for single member, in case of death of the member, a provision should be included in the operating agreement who the LLC is to be left to. I've been following, a bill in progress, that is supposed to lower filing LLC fees in Illinois to $39-LLC & $59-Series, but don't know when it will be passed. Not sure about the annual fee. Thanks for the info, please inform of any potential pitfalls.

Thanks for the reply. I'm definitely looking at the series. I've read the same thing about the spouse as a partner and the disregarded entity. A single member LLC shouldn't reduce protection should it? Also, what happens if I die? Does the LLC need to be included in the will somehow? What info was included in your Articles of Organization, did you file yourself or an attorney? Thanks

I am looking at forming, a Series LLC in Illinois, with my wife for our rental properties. After doing some research, I am only more confused. It seems like there are very different outlooks, strategies and methods. I want something simple for liability protection and taxes. Originally I was thinking 2 member( me & my wife) LLC as disregarded entity. But I believe in Illinois would have to file taxes as partnership? Also, some articles I've read go so in depth it seems like overkill. I've seen example Articles of Organization 17 pages in length, and clauses for every possible situation. Also, seems like if the details of the LLC aren't followed exactly, then the veil can be pierced. I'm not an attorney and would probably make a mistake. I would hate to think I went through the effort and cost to setup the LLC only to have it pierced because my T's weren't crossed. Maybe for a large company or an LLC with several members this is necessary, but I would like to believe for what I need something much more simple would suffice. The costs in Illinois are also prohibitive. For a Series LLC in Illinois $850($750 to file,$100 expedited fee), $50 for each additional series, $250 per year, not to mention attorney fees. I currently have an umbrella policy, would need one for the LLC as well. I'm assuming a LLC/partnership tax return could be an additional $250-$500 yearly. So, could be an extra $750-$1000 a year. I probably sound like I'm down on LLC's, I'm not, just looking for something simple that will provide protection. Is setting up and properly operating an LLC as difficult as I've been reading? Thanks

I'm looking at at slab house for a rental. It was built in 1966. I'm not sure of the sewer line material, possibly cast iron? I would like to hear of any problems experienced from slab home owners, especially with water or sewer lines. Also, does anyone specifically avoid slab houses. Thanks

I have not yet created an LLC. My theory was to obtain a LOC on an existing property, for final financing, purchase a property under the new LLC, pay off more quickly than a traditional loan, then repeat. Basically try to avoid closing costs, etc. I could transfer title of the existing to the LLC, but I've read banks don't like to loan to LLC's. Not sure if that applies to LOC or not. Thanks for the replies.

Like the title says, can you buy a property under an LLC using a line of credit secured by a rental property under personal name? What are the ramifications? Thanks