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LLC STARTUP

Explanation of LLC Real Estate/Development Start Ups. The LLC is used to title all Real Estate purchased, the LLC does nothing else until the property is sold. The Manager a normally is a corporation. However in a startup situation the promoter might chose to expose himself as the Manager or if their is no income for anonymity use a Manager. The Manager is responsible for Developer/Property Management, this company is the operating business with a bank account, company operating cost incurred in normal business operations and cost it incurs developing the property. Also, the manager collects rent and generally pays the bills. The Members are the investors, this should be easily understood. Procedurally, the Manager (this might be you) goes out and finds a property to develop. Upon locating the property the Manager would make an offer, when said offer is excepted the investors deposit funds into escrow for per the operating agreement, which is created between the investors and the manager. When the property is sold the manager deducts all cost incurred in this transaction, the balance is then paid to the investors or exchanged (1031) into another property. Basically the manager gets paid for their work including all expense, cost and salaries and bonuses. Then the remainder would go into another property tax free. In the this scenario the manager has exposure and limited operating deductions, the investors protect their identity by using a trust to represent their membership. All these services are included in a package provided by NFH. These services include 1. A basic LLC with an operating agreement and an ILMM 2. One Trust agreement. this package complete is $925 with all services completed in two working days. See our order form
Basic LLC w/trust It is highly recommended that you review the Preferred LLC package which offers substantial tax benefits and privacy. see LLC Preferred Chart

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