If you are a Kansas or Missouri-based entrepreneur in the real estate industry, learning how to properly set up a real estate LLC may seem daunting at first. Fortunately, the legal talent at Lex Launch is familiar with the laws and procedures in place for this process – and we look forward to working with you.
Setting up an LLC properly takes time and careful consideration – particularly for LLCs working in certain niche industries like real estate investing. To ensure your documents are prepared thoroughly and properly, an experienced LLC attorney should be involved from the outset.
Steps for How to Set Up a Real Estate LLC
If you’re like many entrepreneurs we work with, you’re ready to get going – now. We understand. However, taking the time to complete the necessary steps to set up your business is a small investment that could reap dividends in the future in the event of a dispute amongst your membership or with another party (e.g., tenants, buyers, or anyone injured on a property in the LLC name).
1. Make Some Decisions
There are a few basic decisions to make at the outset of this process. First, what will you call your business? Some people choose the obvious name of their product or service, while others prefer something a little more obscure. From there, you’ll need a federal tax ID (available online), separate bank accounts titled in the name of the LLC, and an understanding of who is considered an owner of the real estate investment LLC.
2. File Documents
To formally incorporate an LLC, the business needs Articles of Incorporation. Other documents that are necessary to properly set up an LLC include a thorough operating agreement (geared toward the real estate industry), formal books and records, and a business license. Our office is well-versed in the documents and filing fees associated with forming an LLC and can ensure your business is set up properly from the get-go.
3. Conduct Your Business
Once your LLC is formed, you want to make sure it does not come “un-formed” as a result of missteps in the daily business operation. This means you are keeping LLC assets and cash separate from individual accounts, holding regular meetings, taking minutes, and timely filing and paying taxes with the Division of Revenue. Your operating agreement will address many of the procedures and protocols necessary to keep your LLC running smoothly and legally – and you can always reach out to Lex Launch to answer any questions along the way as well.
Contact Lex Launch Today
Here at Lex Launch, we are able to assist Missouri or Kansas real estate investors with the process of setting up an LLC to engage in investment activities.
If you’d like to discuss the options and how to set up a real estate LLC, visit us online right away.