P.O. Box

[mamasanta25 0]

Hello all,

When setting up your LLC, or SC, you have to enter a receiving address. I spoke with an attorney the other day, and he says you may use your home address for this address, and do not need a p.o. box. So, do most people opt for the po box for privacy reasons? Also, if you get a po box, does it matter how big it is? I mean, you won't really be receiving too much there, right? mamasanta25

[MichaelC 160]

Samantha, the laws vary from State to State. Here in Florida, for example, a P.O. Box is not allowed. A physical address is a must in the event someone wants to serve legal papers on you. Of course, that is the exact reason we set up an LLC in the first place. If someone wants to sue your LLC, let 'em. If they win they get a judgement against an LLC with no assets and no chance of collecting a cent.

As for a P.O. Box, smaller and cheaper is best. Should any large parcels arrive that don't fit, you'll receive a notice in your box to go to the front counter to pick it up. Your money is better spent elsewhere.

[option8 0]

just a suggestion...

I'm personally not so thrilled with doing business with someone who uses a P.O. Box.

 

A better choice (IMHO and solely based on perception) is to use a mailbox service that will let you use a street address and a suite no. - or some such combination that hides the fact that you are a p.o.box.

 

option8

[mamasanta25 0]

Thanks for your input guys. Option, yes I would definitely have a street address with the P.O. Box. But, I still don't get it, do you just not use your own address for privacy reasons? Here in Racine, if I use a p.o. box, people will know where that p.o. box is located. And if I use my home address, they may have an idea also, so what is the difference? Michael, I notice you use a p.o. box, is there a reason for that?

samantha

[MichaelC 160]

Sure, there's a reason I use a P.O. Box. I have a friend who is also a landlord. To make a long story short, he had tenants who turned out to be selling drugs from one of his properties. He found out and alerted the authorities. They, in turn, investigated this tenant and arrested him. The tenant called and threatened my friend, saying I have your address and I know where you live. Fortunately, nothing ever came of the threats.

Moral of the story: you must separate your business life from your personal life, in every way you can.

[ChrisNJ 0]

And herein lies the beauty of mailboxes etc! They give you an actual address with a suite number. Can sign for ups packages. Let's see the post office do that. As well as lots of other services. If there's a downside. I haven't found it yet. And no I don't work for them. lol

[-Tony- 0]

mamasanta25,

 

Virginia is the same as FL no PO box, I didn't want my address on my LLC but hey what can you do....

 

MichaelC,

 

The tenant called and threatened my friend, saying I have your address and I know where you live. Fortunately, nothing ever came of the threats.

 

actually I geuss he'll find out in 5-10

 

Tony

[MichaelC 160]

MichaelC,

 

The tenant called and threatened my friend, saying I have your address and I know where you live. Fortunately, nothing ever came of the threats.

 

actually I geuss he'll find out in 5-10

 

Tony

With good behavior, it's 3 to 5 .

[option8 0]

Michael,

 

Would this be one of those good reasons to put each property entity in it's own trust? (after the mailbox, of course)

 

Option8

[-Tony- 0]

MichaelC

 

blol (belly lol)

 

Tony

[MichaelC 160]

An LLC is not designed to hide ownership identity. It is to protect oneself in the event someone wants to sue you. The LLC separates your personal assets from the LLC's assets, (which are zero, of course), so you are not personally liable should a judgement be rendered against you.

For example, say I set up a sandwich lease with a homeowner, and then place a tenant/buyer in the property. Let's assume the worst and everything than can go wrong, in fact, does. To make this a short story, the tenant/buyers are evicted and I now have a vacant and uninhabitable property on my hands. (Hey, guys, don't get scared. This is just an example.)

My bank account doesn't allow me to make payments on this vacant property, despite my desire to do so. The homeowner is understandably upset, because we have a 36 month agreement and he is expecting the remaining 30 months rent to paid.

He follows the legal requirements and has our agreement terminated, and now he is suing me for damages that amount to several thousand dollars. But, being the smart investor that I am, the Lease with Option to Purchase Agreement was signed: Carbo Properties, LLC. Michael Carbonare, Mgr. He must sue Carbo Properties, LLC. He cannot sue Michael Carbonare. He wins the suit and gets a judgement against Carbo Properties, LLC. So what? He can't collect a cent. Why? Carbo Properties, LLC has zero assets. I have no properties owned under that entity. I have no vehicles under that entity. I have no accounts of any kind under that entity. This is how an LLC is designed to protect you.

Again, it is not designed to mask ownership. So, it is not big deal when the State requires you to have a street address listed when you form it. A street address is required so papers can be hand delivered to you or your agent if that is ever necessary.

Now, a trust, on the other hand is designed to hide ownership. That's a whole other ball of wax, and one that is best answered by an experienced professional. Your location and your specific situation are factors that come into play and why I say you would be best advised to consult with a local pro who knows the specifics of what you are trying to achieve by setting up the trust.