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JordanLaubaugh

Jordan Laubaugh Incorporates

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Dear fellow members,

I have been considering incorporating for a few weeks now. I have since begun the process. I'll start this post off with a few warnings.

 

First, it is not easy to set up any type of legal entity. You have to pick a name. I don't know about you guys but I have spent hours trying to find a suitable name for my entity that is business(y) and cool. Apart from picking the name though it is pretty easy. Here are the steps I took.

 

First step: Deciding which legal entity to use?

As I was going to be the sole investor I had to choose between a Limited Liability Company, a Sole Proprietorship, and an S-Corp. I chose LLC because it is basically the easiest and most common. S-corps aren't hard but you have to file a C-corp and then apply for S-corp status.

 

Second Step: Filing the Articles of Organization (or Art. of Incorporation for S-corp).

This is a painfully simple form to fill out. You can get it from your states website. http://www.michigan.gov/dleg/0,1607,7-154-...6737---,00.html

(If you are unable to find it let me know which state you are in and I'll try looking it up for you)

After you fill the form out you need to submit it. You can mail it in or drop it off in person. The address is at the bottom of the form. There is also a small fee (Usually around $50 that you have to mail in with the form)

 

As of right now, I've completed this second step. It's all you have to do to set up the entity. There are things that have to be done to keep it "legally enforceable" that I will post more about later as I start doing those things. I will also expand more on this post when I get back later.

 

 

***Disclaimer: This is not legal advice from a legal professional. Should you be seeking legal advice you should contact your attorney or CPA.

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Guest Diver

Hi Jordan, nice post. Sole prop. is the easiest though. It cost me $10 and a few minutes at the kalamazoo County Clerks office. You're in GR aren't you now? Anyway I'll be waiting to hear the rest, I'll be doing it soon. Thanks,Diver

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Have you done a deal yet?

 

I see know reason to set up entities and all the legal stuff if you have not done any transcations.

 

Just my opinion.

 

I agree man, The LLC isn't specifically for doing L/P deals. It's the front for a property management business I am starting. That will hopefully encompass a lot more than just L/P

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Since we are on the subject of LLCs.

 

I have been thinking about changing the name of my business and start a new LLC under a new name. I guess I will let my original LLC expire. Does it have any effect with the past completed deals (SLOs & CAs) that my old business name is no longer an LLC? :o

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Well from a tax standpoint speak to your accountant. But if no deals are being done and the deals are completed you could let it die.....I would just send in your state paperwork to disolve it yourself instead of letting the state do it.

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Well from a tax standpoint speak to your accountant. But if no deals are being done and the deals are completed you could let it die.....I would just send in your state paperwork to disolve it yourself instead of letting the state do it.

lol, I read this for about 10 minutes confused as hell til I realized there was a post above it that you were referring to...

 

Anyways....

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Well from a tax standpoint speak to your accountant. But if no deals are being done and the deals are completed you could let it die.....I would just send in your state paperwork to disolve it yourself instead of letting the state do it.
Thanks JR. I am not sure but I think I briefly read on the state's site where I can bring in another company into a new or existing LLC. This would help with existing on-going SLOs. It is really just a name change though. I will have re-read and get more info.

 

lol, I read this for about 10 minutes confused as hell til I realized there was a post above it that you were referring to...

 

Anyways....

Hey Jordan, didn't mean to squash your post. :o

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Well from a tax standpoint speak to your accountant. But if no deals are being done and the deals are completed you could let it die.....I would just send in your state paperwork to disolve it yourself instead of letting the state do it.
Thanks JR. I am not sure but I think I briefly read on the state's site where I can bring in another company into a new or existing LLC. This would help with existing on-going SLOs. It is really just a name change though. I will have re-read and get more info.

 

lol, I read this for about 10 minutes confused as hell til I realized there was a post above it that you were referring to...

 

Anyways....

Hey Jordan, didn't mean to squash your post. :o

 

Lol no problem man, Always love information changing hands. Doesn't have to be with just me.

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Question,

 

Operating a Property Management Company (that conveniently specializes in Lease/Purchasing, but that also offers other services, like managing rentals, prepping and staging apartments for in between rentals, and other services along the same lines. Would I need any licensing for all this?

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Don't know what state you are in but if you are operating a property management business in Florida and you don't have an interest in the property you must have a real estate license. I even think it has to be a brokers license, but I would have to confirm that.

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Jonathan-

 

When getting a "brokers" license do you need to work first as an agent under a broker for a specific amount of time, or just take the required education requirements and testing?

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Jonathan-

 

When getting a "brokers" license do you need to work first as an agent under a broker for a specific amount of time, or just take the required education requirements and testing?

 

Steve,

 

It is going to be state specific. The state of Florida requires both Classroom work...I think its 65hrs and then take the test.

 

Now to become a broker in Florida you must have a Salesperson license. I think for 2 years.

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Don't know what state you are in but if you are operating a property management business in Florida and you don't have an interest in the property you must have a real estate license. I even think it has to be a brokers license, but I would have to confirm that.

 

But with anything like Lease/Purchasing deals I would have an interest and therefor not need a license. But then several other parts that I'd considered I would most likely need a license. I am in Michigan. I guess I'll speak with an attorney to get clarification.

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