I was wondering if there are any drawbacks to start sending mailers without forming the LLC first. I have my domains, virtual address selected, and phone service. I was thinking to get a deal or two under my belt before forming the LLC. Any thoughts? Or is there anything else that needs to be in place to start acquiring? Thank you.
The only drawbacks I can think of would be:
- Your personal name would be on the return address.
- You’d have no personal liability protection.
- You wouldn’t have whatever legitimacy might be offered by having a proper business name.
In my mind, none of these are huge issues if you just trying to test the waters on your first campaign.
I wouldn’t want to do it this way forever, but you’d probably be fine doing your first one like this.
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What if you got a business license in the city of your virtual address, and starting as a DBA? Then you could put your business address as the return address? It happens that my state (MA), is the highest cost form LLC. State fee alone is $500. But Maybe it makes more sense to go full in. Thanks Seth
Just send the mail with your Buy Website Name on it, your Virtual Mail Box as return address, and sign your first name at the bottom. Give details out later, when needed.
When Purchase Agreement time comes, buy in your own name. You can put your PO box address on the deed and that will be the public address/on county website. Yes, your name will be on there but what’s the big deal? Your spouse might have to sign to sell but another no biggie.
Its raw land. Not much to get sued over. But people get sued for being negligent typically or breaking the law.
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I like the way your thinking. I will consider this. But the more I’m absorbing in this field,(Been watching vids 3-4 hrs a day) the more I’m considering going all in. I was going to start this as a side gig…Do you guys usually get a business permit in the town that your virtual office/mailbox is located.
I did my first few sales in my own name, then created an LLC ($800/yr in CA). Not a big deal either way aside from the minor drawbacks Seth mentioned. I would recommend doing a few deals first. I wouldn’t dwell on it too much, just make a decision and keep moving forward. Good luck!
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What makes you think you need an LLC? Consult a CPA who has extensive experience in entity formation. Your tax liabilities differ from mine, but that does not mean we both need an LLC. I have an LLC and I have also a Sub Chapter S.
As online LLC creation here in Arizona was approx a one-time fee of $100, I did it myself…I still need to create an Operating Agreement for my LLC, which I wasn’t aware of in the beginning…I wanted to set up an LLC to show I was a serious business owner and also to keep my name off the Deeds as much as possible.
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That’s exactly why I would get one.
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Michael,
I have 5 LLCs in MA (Boston area) for my multifamilys. The $500/yr just to have an LLC there is ridiculous but it’s basically a socialist state that discourages business, IMHO. Even if you register an LLC in another state, if the property is located in MA, you still have to pay them their $500/yr fee. (Nice work if you can get it). I am a belt and suspenders guy with potential litigation so I say it’s still cheap insurance.
You don’t need a business license.
I’m getting a MA LLC. Do you live in MA? Do you have to register an LLC everytime you buy an out of state property? Thanks for your comments