Selecting The Right Business Address For Your Entity

what's up guys hey clint hughes here and in this video we're going to talk about choosing the proper business address for your rental real estate limited liability company all right so what does this have to do with it has to do with setting up your llc and trying to figure out what address should you put on there now i hadn't thought about cutting a video on this but i received several comments on my other videos where people kept asking well if i set up an llc and i follow those articles of organization with the state clinton what address do i list is my business address great question so let's hit on hit him hit on that so remember when you're going to set up a limited liability company you have to file what are called articles of organization with secretary of state typically they're going to ask for of course the business name that you're coming up with they're going to ask for a registered agent i'll just put ra there so that's the person that accepts service or process if someone is suing your entity or if the state needs to get a hold of you for your renewals typically this should not be you you should use a third party service anderson provides that service we're a registered agent in 50 states um so we do that for our clients and the reason why is that if someone wants to start a lawsuit against you you don't want them showing up at your house right that that's a big thing the second thing is is that for a registered agent you have to have a physical address where there is someone that is located there if it's at a business address during business hours otherwise if you don't have that then it has to be your home address so again it allows people to track you to know where you live so that's why you should use a third party now the other thing you're going to have to list out now is going to be your business address okay so let's say this is an llc that i'm setting up for this rental property the property is at one zero three four five apple lane okay so that's the physical address of the property itself now i've seen a number of real estate investors who are doing this that will actually put this address as their business address for their limited liability company and you don't want to do that and here's why because when you have a business address that's filed with the secretary of state on your entity number one if people are looking at that right businesses and they're trying to determine that maybe they put it into their system this address and they want to reach out to you and send you information who's that information going to go to you no it's going to go to your tenants and what are your tenants going to do they're going to get that and say what is this a froggy bottom limited liability company oh this is just junk mail they're going to toss it they're not going to forward it on to you so you're going to miss out on stuff the other problem could be when you go in to open up your bank account the bank looks and they see this address here and they set up your account with this address now your statements are going to your tenants bad decision there you don't want to use your rental property address as your business address so then what are my other options well we've seen people do this they use a home address okay now uh you're using your home address we're back to this problem i said about being your own registered agent people know where you live and i really don't want my home address on my llc i'd prefer if people don't know where i live or if they want to find me they have to do a lot of searching now if i'm using an anonymity strategy where i'm trying to protect my identity or maybe the state doesn't collect any information as far as who's the members or managers are and you think this is great i've got an llc i don't have to disclose that i'm a member or manager because the information is not being collected well you just blew that strategy because you put your home address on there so i would shy away from using my home address now you got a pl box okay so that's another option you could consider setting it up with the po box that's probably the better way to go then so don't use your property address don't use a home address go out there and set up a p.o box for uh for your business entity now the po box or you could use like a a ups store which you know doesn't give you a po box but gives you a sweet number pmb is what those are either way if anybody looks they're going to know that you're using that type of address now when you go down that road and you use those things either one of these keep in mind that when you go to open up your bank account for this limited liability company this will typically not fly it will not work for you to get a bank account open so when you're opening up your bank account you're gonna have to go back and you're gonna have to give them your home address for your business entity so so don't let that deter you from using this because it when you say to yourself well my banker won't accept it it doesn't matter if your banker won't accept it give him your home address to get your account open in fact i want my statements coming to my home address let them come to you does it lessen your liability protection of the llc not at all i've set up plenty of llc's for my own investing when i open up the limited liability company let's say it's in north carolina or it's in texas what address do you want to use i give my local address right here because i'm opening the account here in washington for a foreign entity there's no problem doing that so setting these things up when you're setting up your llc that what you need to avoid is don't use your property address don't use your home address set up a service that will provide you an address if you're think you know anderson we've been providing addresses for our clients for 20 years where we actually give them either a las vegas or a wyoming address for their entities that are filed in washington oregon california ohio new mexico it doesn't matter we use an out-of-state address for them and the reason we do that is to make it even more complicated for someone to try to track down who the actual owner is of the entity i mean think about this you got a washington llc with the nevada address what is the assumption somebody might draw from that oh the owner of that property or that llc lives in nevada in fact they're a washington resident so take it from there choose any property addresses it's an important aspect of creating your limited liability company you just want to make sure that you're setting it up so it doesn't go to your tenants or it's traced back to you hey guys if you've got any questions on this which hey i don't see there being that many questions put them down there i'll be sure to get get to them and that like button if you're not yet uh a subscriber the like and the subscribe button you better be pounding those i'd appreciate it take care [Music] [Music] bye

Channel: Clint Coons Esq. | Real Estate Asset Protection

Views: 12,743

Keywords: asset protection, real estate, real estate lawyer, real estate attorney, real estate llc, real estate investments, real estate investing

Id: sVFGNgbruDg

Length: 6min 37sec (397 seconds)

Published: Thu Mar 10 2022