Savvy Real Estate Investors protect their assets by forming a Limited Liability Company. Our LLC Formation Service provides you with a totally customized business entity, optimized for real estate investment.
Unlike many websites out there, we don’t just make you fill out the state forms and submit them on your behalf… No, an actual person trained and licensed to do so will prepare custom documents to accomplish your goals. And we offer a comprehensive package that takes care of everything for you. During this process we keep you informed every step of the way. From the time your Articles of Organization are “Received” and “Approved”, published, etc… we keep you in the loop for every stage of your limited liability company’s development.
Here’s what comes with the LLC Formation Service (Arizona):
Basic LLC Services:
- LLC Name Availability – We’ll check as many names as you want with the Arizona Corporation Commission to see what’s available. If you find one you like and don’t want someone else to take it, we can help you reserve it.
- Articles of Organization – This is the form that lays out your basic LLC structure with the Corporation Commission.
- Corporation Commission Cover Sheet – This is another required form we take care of for you… seems like there’s a ton of these “required forms”!
- Act as Statutory Agent – If you like, we’ll act as your “Statutory Agent” for the first year for free! This is a $100 value when purchased separately, and costs $75 a year after the first year.
- File with ACC – Note: There is an additional $50 – $85 fee the Corporation Commission charges to process your submission on an “Regular” or “Expedited “ basis. These fees, and any services requested are not included in the basic LLC formation service.
- Notice of Publication – After the Articles of Organization are approved, we’ll publish them in an appropriate county newspaper. This is also required by Arizona law, and additional fees will apply. The fees vary depending on the County your LLC will be operating in, but we have some pretty good deals worked out to save you as much money as possible.
- Affidavit of Publication – After publication, we’ll file this Affidavit with the Corporation Commission. We’re well on our way!
- Operating Agreement – No LLC should be formed without an Operating Agreement. It spells out exactly how your company will run, clarifies the rights and responsibilities of the Members (owners), Managers, etc… It’s your company “bible”!
- Membership Certificates – Membership Certificates show what percentage of ownership each Member has in the company. It’s like an LLC “stock” certificate.
- Employer Identification Number [IRS Form SS-4] – Although we can’t submit the IRS Form SS-4 on your behalf, we can certainly provide you with a copy of the form and some questions you might want to ask your CPA / Accountant regarding an LLC Tax ID Number. We’ll also let you know when and where to submit the form via fax, mail or over the internet to receive your EIN the same day (at no additional charge!)
- Organizational Resolutions – These Resolutions serve as a company meeting and minutes, and ratify and adopt everything as it’s set up. This makes your LLC official!
- Digital Portfolio – We provide a digital portfolio that contains all of your company documents. Everything is scanned into pdf format for easy access when you need it. This is your LLC in a nutshell!
Optional LLC Services:
- Spousal Disclaimer (LLC Membership Interest is subject to community property laws)
- Transfer of Membership Interest Testament (Like a Beneficiary Deed for LLC Ownership Interest)
- Buy-Sell Agreement (We’ll help business partners draft a BSA to dictate the terms of their “business divorce” – like a “business prenup”.)
- Address Service (Out of state investors needing a local address for the business entity can take advantage of our Address Service for filing.)
- Amendments to Operating Agreements (If someone has an entity already formed, we can amend the OA.)
- Custom Portfolio (We provide a quality custom portfolio that contains all of your original documents. Everything is easy-to-find and well taken care of. This is your LLC in a nutshell! We’ll also provide all of your documents in digital format.)
- Company Seal (Order you a company seal to emboss your official documents.)
Here’s a few things to consider for the questionnaire:
- LLC Members – The LLC “Members” are in actuality the Owners. “LLC Membership Interest” is like the LLC “Stock”.Transfer of Membership Interest Testament – Do you know who you want to receive your LLC membership interest after you die? If so, you can easily avoid probate. If something happens to you and you don’t have a Transfer of Membership Interest Testament executed, your heirs will likely have to endure this long, expensive and unnecessary process.Buy-Sell Agreement – If you think about severing your ties within the LLC as a divorce, this agreement would be the prenuptial agreement! Perhaps that sounds a little strange, but the analogy holds true. If you find yourselves in a position with member(s) leaving the LLC, you’ll wish you had this document in place. It aspects you might not think about now, like what events trigger a buyout, who membership interest can be sold to and how much it’s worth! Not everyone needs a BSA, but the truth is a whole lot more people need them than have them!
- How many members will your LLC have?
- What will the ownership percentages be? Some people like to do an “Even 50% / 50%”, but that’s not always the best idea! Sometimes it’s a good idea to have a someone with a final say. There’s something to be said for the idea of “the buck stops here”.
- Are any of the LLC members married? Arizona Community Property Laws apply to any LLC owner that is married, so the spouse of that member automatically receives half of their economic interest! We can ensure the LLC member holds interest as “sole and separate property” with a Spousal Disclaimer of Membership Interest form.
- Are there any other types of entities that will own a part of the LLC, like a Trust, Corporation or another LLC? If so, who is authorized to sign on its behalf?
- Tax Questions – We’re legally prohibited from giving tax advice, but be sure to consult a CPA or Tax Attorney regarding your individual tax situation. Some things to ask about might be how to elect your LLC tax status (S-Corp? Partnership?), if your real estate investment can be treated as capital gains (at a lower tax rate) or perhaps rental property tax benefits (deductible business expenses, etc.).
- Charging Order Protection – Generally speaking, we can structure your LLC to lean towards two distinct goals: Protecting the LLC Members from the Managers or Protecting the LLC members from an outside Charging Order Attack. If all the Members / Managers trust each other (like a husband and wife) you’re probably going to want the charging order protection!
- Holding Real Estate Investments – A properly formed LLC will provide some protection from outside claims against your personal assets as well as charging order protection, but keep in mind all of the LLC assets are in the same pool! If you have multiple investment properties, and you want complete isolation between them then each property should have its own LLC. Luckily, we offer substantial discounts for subsequent entity formations. When you complete the questionnaire, be sure to let us know how many properties you have so we can offer you the best possible deal.
Take a moment to consider these points and then let us know how you’d like to get started. Keep in mind the process takes a while, so if you’re on a deadline it’s best to get the ball rolling. The sooner we get started, the sooner we can get your LLC formed and ready for business!
Contact us for a written estimate