Question about starting a new real estate company

[coeus890]

What is the name of your state? Maryland

I'm not sure if this belongs here or in Business Law.

A friend and I want to start a company that will do land aquisitions and sales. Is an LLC the best way to go ? Do we need to form an LLC for each piece of land we buy and sell ?

What if I want to get into other deals with other business associates ? FOr example, what if, at the same time, I decide to invest with 2 other associates in some real estate in Baltimore ? Do I need to create a seperate LLC for that ? And , is that going to be tied into the first LLC with my friend, or does that depend on the agreement ?

Bottom line, I dont know what the best kind of legal business entity would be for this situation .

 

[HomeGuru]

What is the name of your state? Maryland

I'm not sure if this belongs here or in Business Law.

A friend and I want to start a company that will do land aquisitions and sales. Is an LLC the best way to go ? Do we need to form an LLC for each piece of land we buy and sell ?

What if I want to get into other deals with other business associates ? FOr example, what if, at the same time, I decide to invest with 2 other associates in some real estate in Baltimore ? Do I need to create a seperate LLC for that ? And , is that going to be tied into the first LLC with my friend, or does that depend on the agreement ?

Bottom line, I dont know what the best kind of legal business entity would be for this situation .

**A: pay a visit to a general business or real estate attorney.

 

[Florid-aise]

**A: pay a visit to a general business or real estate attorney.

Poster, this is by far the best advice by HG.

Question however. How many members can an LLC have in your state?

 

[HomeGuru]

Poster, this is by far the best advice by HG.

Question however. How many members can an LLC have in your state?

**A: is that a trick question?

 

[seniorjudge]

"...A friend and I want to start a company that will do land aquisitions and sales. Is an LLC the best way to go ? Do we need to form an LLC for each piece of land we buy and sell ?..."

A very successful real estate attorney I know creates an LLC for each piece of land.

He says it's easier for bookkeeping and tax purposes. (There: that is the sum total of tax law that I know. It is also the sum total of bookkeeping info that I know.)

ALSO, buy lots of liability insurance.

 

[Florid-aise]

**A: is that a trick question?

Not intended to be, HG. I was just too lazy to research the answer myself. I do absolutely defer to you the better practice of which path to take for OP. My initial brainstorm would be that the members could be other LLC's. Sortof "keeping everything under one roof"; or, "in the family" so-to-speak.

In Fla: LLC members can be "one or more"

In Nevada: Maximum of 10

Hence the question.

 

[Florid-aise]

A very successful real estate attorney I know creates an LLC for each piece of land.


ALSO, buy lots of liability insurance.

A very successful real estate attorney I know places each piece of land in a trust.

So, you can see there are many optionsl

Kinda countin on HG to fire that REIT bullet.

[Howboutit, HG? You gonna? You gonna?]