LLC and Trustee

An LLC is good until you sell the property. Then there is an extra LLC fee that starts at $900.00 for LLCs with annual gross revenue greather than $250,000.00 and rises in steps to$10,789.00 for gross revenues for the year of $5,000,000.00 or more. Gross revenue, not profits or capital gains. In real estate investing, that's $10,789.00 you just don't need to spend.  Depending on the client's plans and other investments, I often recommend a limited partnership with an LLC as the general partner. If you invest in several properties, each can have its own limited partnership, with just the one LLC as the general partner for each. You can also put several smaller properties into a single limited partnership. How many depends on how much of your equity in one property you want at risk to claims arising from problems at the other properties. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.   Dana Sack