When Should You Set Up A Property Management LLC?

[@ClintCoons]

Want answers to your questions about this video? Schedule a complimentary consultation with our experts today! aba.link/92l

[@hassanzorome7497]

Chris you’re a genius a what your doing, I called your firm recently and I was told you’re not taking new customers anymore.

[@keysncoffee7733]

Papa Clint back at it with the perfectly timed videos!

[@ClintCoons]

appreciate the support

[@ryantunison5433]

I highly recommend taking advantage of the Strategy Session. I had one today with Seth. As someone that feels I know quite a bit but also understands that there are many things that I don’t , Seth never talked down to me and it was a back and forth conversation with no ego.

[@ClintCoons]

Glad you were able to set one up

[@mike2959]

One other insight and possible benefit to creating a Property Management company is being able to convert that Property Mgmt company to a S-Corp. Something normally not recommended with property LLC’s. Then your property mgmt company as a sole employee. You can then do a solo 401K. And a nice match.

[@mikestantonii6205]

ok, for those of us that are considering using an already established PM company, would you be willing to make a video (or direct if you already have) discussing questions we should ask/look for when interviewing PM companies.

[@ClintCoons]

I have. Search my channel for property management and you will find some.

[@relentlessrelentless8810]

@clintcoons Great video and you are a great teacher, One question, do we need to have agreements between LLC's and property management company? Or not needed since this comes under ONE structure.

[@CianTv1]

So, I’m going to be running my Car rental business out of the same LLC as my property management business. The LLC doesn’t have much assets cause we have a second LLC that owns the car and we lease them to the rental business like your Turo video. When we obtain a rental property, we’re going to want to put the property in it’s own LLC. My strategy is so the General Rental business LLC creates a trust that owns the LLC that owns that first property. Do u think this is a good strategy?

[@ClintCoons]

Yes, that will work. A company can have multiple streams of income, and creating additional corporations for your management activities becomes redundant.

[@Frankiep72]

Great video! What about if the rental properties are in two different states? Create the property management LLC in one state, and foreign file in the other state?

[@ClintCoons]

Yes, absolutely

[@ericksellsnj]

When opening the bank account for this management LLC what business description should we tell the bank?

[@CianTv1]

If I have an LLC that owns a property and I have my property management LLC rent that property out and profit off of it, does my property management LLC need to pay the owning LLC to make that legal or can my agreement just say that the property management LLC pays $0 to the owning LLC?

[@ClintCoons]

You will need to pay money to the property, LLC, to make sure that the relationship is respected in the event of a lawsuit or audit. On the other hand, if you have a holding LLC that owns the property-owning LLC, then you could make the payment to the holding LLC in place of the property-owning LLC.

[@donsergio2406]

I think I get the advantages of forming a poperty management LLC. However, I wonder how that LLC will comply from a licensing perspective. I believe every state requires a license to manage 3rd party's real estate (which it would be the case if two different LLCs are involved).

[@ClintCoons]

You cant manage another person's real estate just your own.

[@ElLeNoir..ELconomics]

Coach Clint !! Good evening

[@ClintCoons]

Hello there!

[@lW9497]

what do you do with the new law where LLCs have to report to the US Treasury?

[@Ar-jm3os]

Hi, What is the purpose of the holding company if each property is its own LLC for protection purposes to separate the liability..? If they are all grouped as owned by the same holding company would that possibly expose the other llc s in the holding to liability in case of a suit? thank you

[@ClintCoons]

The holding LLC does not do anything that brings liability I.e., it will not be sued.

[@Ar-jm3os]

@@ClintCoons ok, but the potential party who sues can sue it knowing it is the owner and it can also own other assets. So what is the point of having a holding company if its not doing anything. thank you

[@Frankiep72]

Great video! Would it be OK to create the PM LLC with a living trust as a manager or member to provide annominity?

[@ClintCoons]

Thanks for enjoying the video. I recommend registering for a complimentary consultation with my team. We'll tailor our advice to your specific needs. Sign up here: aba.link/92l

[@ryanplantzy]

Great video! If we have properties in multiple states is there any workarounds about having to form the PM LLC in the actual state where property is located? Or would we need to create various management companies based in every state we own? Was hoping to consolidate to one.

[@ClintCoons]

Use one PM but foreign file it in every state where you self manage.

[@billolsen2078]

Good Info

[@mcbiolife9446]

Hi Clint, awesome video! Do you know if you can give the power to your own Property Management LLC to build additions and make new acquisitions? Asking because since it's taxed at a lower rate, maybe we could leave money in the PM LLC and build an addition on one of our properties with those funds and save on taxes that way.

[@ClintCoons]

There are many strategies to look at when it comes to creating a RE business. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@mcbiolife9446]

👍 Thanks!

[@edubbs779]

I have an LLC named, XYZ Property Management was it better if I named it XYZ Properties then another LLC to "manage" it called XYZ Property Management or is it fine as just XYZ Property Management??

[@ClintCoons]

I think it is fine but I would not use a name similar to the property holding LLC name.

[@slushere]

If I’m self managing, how would you suggest setting up this orange box/management LLC….is it okay to just create a manager managed single member LLC in the operating state with my name as the member and manager, or go the anonymous route as another LLC under the WY holding co?

[@ClintCoons]

Yes I do not see any problem with that approach. When you are managing your tenants I prefer to avoid the anonymity with the management entity.

[@JacksonSmithJr]

Clint, Does filing for an ein with your ssn destroy your anonymity ?

[@ClintCoons]

It does not.

[@aeongaming2561]

What state should the Property Management LLC be filed in? WY or State in which property resides?

[@ClintCoons]

The state where the property it manages is located.

[@duracell87]

When goin to evict a tenant, will I be able to represent the interest of the company in court or will I need a lawyer every time?

[@ClintCoons]

Lawyer will need to be hired.

[@duracell87]

Thanks for the video. What are your thoughts on a property management company limited partnership in Az (ARS 29-333) in conjunction with asset protection ? Or am I confusing the concepts of added layers of asset protection and property management

[@ClintCoons]

That works but it will make anonymity more difficult.

[@duracell87]

@@ClintCoons if the general partner being a WYM LLC and limited partner being a trust (anonymous) will it not have anonymity??

[@ClintCoons]

@@duracell87 Yes but you will need to register the Wy LLC in AZ and this will blow your anonymity.

[@duracell87]

@@ClintCoons i appreciate all ur videos and time answering question. Thanks. I still have questions and confused about why the wym LLC doesn’t keep u anonymous in AZ . I’ll look into setting up a free consultation. Thanks again

[@billolsen2078]

Test

[@Kassandrasson]

Why not just have one holding company that holds one subsidiary which the properties are owned by

[@ClintCoons]

I prefer to keep the management entity separate from the holding entity.