HOW DO WE FORM A LLC FOR REAL ESTATE IN NY
Elder Law Attorney
You would need to file articles of organization with New York State Department of State and the meet the publication requirement by putting a notice in 2 newspapers, one weekly, and one daily, for 6 weeks. You should also have an operating agreement prepared. You can then transfer the property to the LLC by recording a new deed. An attorney can and should assist with all of this.
Roman Aminov, Esq.
Law Offices of Roman Aminov
Estate Planning - Elder Law - Probate
147-17 Union Turnpike | Flushing, New York 11367
P: 347.766.2685 | F: 347.474.7344
Roman@AminovLaw.com | www.AminovLaw.com
This answer does not constitute legal advice and no attorney client relationship has been formed. Before choosing a course of action, it is always advisable to seek the advice of an attorney in your area.
10 lawyers agree
You really should have a business lawyer do this for you. While the forms that need to be filed with the estate are probably available online, this is not a no brainer. The Operating Agreement is something that should be given careful consideration and a boilerplate form may not do justice to your business. If you are intent on doing this, it makes sense to do it right. It should not be all that expensive.
For forms and MUCH more information, please see here: http://www.dos.ny.gov/corps/llcguide.html
Best of luck on your new venture!
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8 lawyers agree
I concur with everything my colleagues have said. I would add one sidenote, however, relative to the expense of forming one. Unlike some other jurisdictions, LLCs in New York have publication requirements. Depending on where you are located, this could significant increase the cost of forming an LLC. It's certainly not a determinative factor, and LLCs are still my model of preference for real estate, but it's something to be aware of.
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7 lawyers agree
My colleagues already pointed out that is money well spent using the services of an attorney for this matter.
From asset protection point of view, an LLC is an excellent tool for isolating the risk generated by a risky asset as an investment property. However, it will not protect you and your personal assets from lawsuits. A plaintiff may always try to pierce the corporate veil by holding you personally responsible by theories as negligence or gross negligence.
Therefore, and depending on the fair market value of your RE and the revenue it generates, and the total value of your personal assets, you may want to consider to put the sole propietorship of(or your share in) of your NY LLC in a Family Limited Partnership filed in astate with strong charging order rules as AZ. This FLP is a specifically designed for asset protection purposes and can hold directly your personal liquid assets as bank and brokerage accounts.
You also may want to consider an extensive umbrella policy. You definitely need to sit down with an estate planning/asset protection attorney.
Douglass Lodmell is the nations #1 Asset Protection attorney and has clients in all 50 states, protecting over $4 Billion in client assets. Answers given by him in this forum do not establish an attorney-client relation. He advises to seek a specialized attorney in the area of your interest for legal representation.
3 lawyers agree