LandInvestors.com Forums +Resources for Success+ $50 LLC Set Up, $25 Per Year to Maintain

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    Luke Smith
    Moderator
    Post count: 1345

    I’m from Michigan. There LLC’s are only $50 to set up. Have looked at lots of other states and set LLC’s up elsewhere too but I keep coming back to MI. They have a one page form to fill out. Only your name and address, the name of the LLC you want to start, the name and address of the registered agent(if it is not you, hire one with a MI address), purpose of the company and your signature.

    They want $50 to start it and then $25 a year to keep it going.

    Here is a link to the form to start one:
    Set Up Form

    Here is the site the form came from:
    List of forms

    Here you can search if the name you want is available:
    Name Search

    Why set up an LLC?
    There are lots of reasons most of which I can’t think of but it sure makes taxes a lot easier when you partner up on these land deals. Set up an operating agreement and spell out the terms there with your members so everything is clear.

    The only cheaper LLC I know of is Wyoming at $35. Problem is they are trying so hard to get business they went a little too far and don’t require your name and address. Because of that the major banks have started to shun Wyoming LLC’s and make it harder to open bank accounts with them.

    Where and how do you guys set up shop?
    Thank You

Viewing 11 replies - 1 through 11 (of 11 total)
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  • Thomas Hybki
    Participant
    Post count: 6

    That’s awesome to hear. Super cheap to continue it seems like.

    I’ve heard a lot of good things about Deleware but it seems like the annual fee is much higher ($300 per year) but might be additional benefits that could out weight the cost.

    Here is a link I found that goes over some of them: https://www.delawareinc.com/llc/advantages-of-llc/

    Any thoughts if this would be beneficial for this business model? Or is it the cheaper the better and no real advantage to speak of other than cost?

    Luke Smith
    Moderator
    Post count: 1345

    People use deleware if they want to go public and or are into some kind of insurance.

    I like Costa Rica for $350 a year better than Delaware for $300. There is a lot more you can do when you start dancing across borders.

    The US is the best tax haven in the world for everyone except Americans. Best financial services. Easiests banking, brokerage and pretty much you name it financial. You or your capital just have to fly a different flag to take it for a full run.

    Jake Robinson
    Participant
    Post count: 130

    Do you know if Michigan has a “charging order” provision in their LLC?

    Owen
    Participant
    Post count: 3

    Wyoming, Delaware have no charging orders. The other states do. To protect your interests just register a Wyoming LLC that owns your “place of business” State LLC.

    J Covert
    Participant
    Post count: 21

    Hi Luke,
    Do you set up an LLC for every partnership deal you do? 1 per property? Also, do you set up multiple LLCs for each of your own properties over a certain amount? Do you file any Doing Business As (DBA) names?
    Thank you!

    Luke Smith
    Moderator
    Post count: 1345

    My LLC’s have changed over time. Used to make lots of them. Have been consolidating them now. Its too hard to keep up with.
    CA likes to collect big fees on them as I live here its a mess. I do deals here to. Partners all over the place.

    This topic is very specific to your situation.

    Delaware is nice too for their series LLC’s as long as you are not in CA and doing deals in CA. One CA deal will pay for all this and then some so I think CA is a big deal and have been going more and more into CA LLC’s

    Just got to price it in.

    Luke Smith
    Moderator
    Post count: 1345

    I like WY too. But you try to get a new bank account with WY LLC its not as easy as others. Try using it through title all the time. They can’t just look you up and check off the boxes they want to check off. They put more ppwk on your plate. You could be doing more deals instead of more ppwk. Have extra fun using a local LLC owned by a WY LLC like lots advocate. It works but you just get lots more ppwk and questions.

    Flipping land you go through title all the time. Its not just buying something and retiring. You are constantly trying to get peoples trust to close deals.

    Owen
    Participant
    Post count: 3

    Here is a solution to the expensive LLC’s Luke.

    If you use Living Trusts by yourself and/or with a partner you can use that instead of creating additional LLC’s.

    Trusts are free to create and you can add amendments to them to tell the title companies how much to pay each partner. Each partner gets to see how much they will get paid on the deals without seeing the other partners percentages.

    Maria Ditrew
    Participant
    Post count: 4

    Luke,

    Try Arizona. Simple online application, $50 for filing with no annual fees. Very easy

    Owen
    Participant
    Post count: 3

    @Maria:

    Be ready for some state tax complications if your LLC does business in a state that’s different from the state where all of its members live. For one thing, the LLC members might have to pay personal income taxes in the another state on LLC income…

    Reference: https://www.nolo.com/legal-encyclopedia/question-must-llc-be-formed-same-28126.html

    Maria Ditrew
    Participant
    Post count: 4

    @Owen

    Great point! Was only meaning to comment on the simplicity of registering.

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