Roman,The ensuing is a generic due diligence check list that my firm uses for the purchase of a commercial property.Business Financial Supporting Documents: Bank Statements for Proof and Source of Down Payment FundsBusiness Profit & Loss 3 Years Income & Expense Statement 3 Years 36 Months Detailed Business Bank StatementsDebt ScheduleProperty Supporting Documents: Purchase agreementSchedule of tenant leases Copies of tenant leases Property TitleSchedule of Units with Square Foot Per Unit Excel Format Schedule of all major improvements to be made with cost breakdown to subject property Exterior Photos of Subject Property Photos of Parking Lot, Street view Interior Photos of Subject PropertySubject Property Tax Documents with AmountsInsurance Binder with Annual Costs12 Months UtilitiesProperty Income & Expense Statement YTD 12 Months TrailingUse of Proceeds in an Excel Format for Improvements to PropertyGuarantor Supporting Documents: 4506 (T) executed Tri merge credit report for all investors Government issued photo ID copy – Front and Back Full detail personal and business bank statements YTD for 36 Months YTDPersonal financial statement for all guarantors and investors YTD for 12 Months YTD3 Years Federal and State Income Tax Returns for all Guarantors and Investors Articles of Incorporation Schedule of Real Estate OwnedSchedule of Corporations / Businesses OwnedDebt SchedulePersonal Financial StatementIncome & Expense StatementReal Estate Owned Businesses / Corporations OwnedRent RollSchedule of Tenant LeasesImprovement to Subject PropertyBusiness Debts to be ConsolidatedDebt Schedule

If he used one of those... he is probably better off cutting his losses and expecting to not be able to use that bidding service again.That said... here's what I'd do.Step 1: Yell.Step 2: New title company.Step 3: Determine the terms of the existing 1st TD.Step 4: Determine if the terms of the existing 1st TD could in any way be supported by a tenant.Step 5: If Step 4 is a no go, approach the lender about a SS or DIL, incorporating into any agreement that the lender will not pursue a deficiency judgment.

Another thing I like about them when I was getting my first sites going was they had SimpleScripts incorporated right into the control panel.

I suppose that, given in which state the LLC is domiciled/incorporated, I'd have to file a state tax return for those states.

Even though I believe rates have peaked, and when they come down we will see another bull run in housing values, I think there is lots of uncertainty and people should make sure decisions work still when they incorporate downside risk into their underwriting. 

The good news is that in Illinois the cost of incorporating has gone down significantly.

It would be great to hear your opinion on whether the franchise tax would be owed in the structure I describe there, which could perhaps be incorporated into Klemens’ structure here to improve the chances of him never seeing a franchise tax bill IMNLO ( in my non-lawyer opinion :)thanks, Rob

Should I incorporate into a business and if so which state do I file that in also what kind?

You should have an attorney create your Articles of Incorporation and Operating agreements.

C corp is very picky on how you can use funds.All original incorporations are C's, you then file the extra paperwork to become an S.