In Massachusetts, the most common structure for real estate enterprises is an LLC. This is due to the ease with which a limited liability corporation (LLC) may be formed and operated.
If your real estate firm is sued, an LLC may safeguard your personal assets (vehicle, home, money). LLCs also provide credibility and tax-saving possibilities.
It Is Simple to Form a Real Estate LLC in Massachusetts
In Massachusetts, you may form a real estate LLC by filing the Certificate of Organization with the MA Secretary of the Commonwealth. In Massachusetts, forming a real estate LLC costs $500.
The first step in organizing a real estate LLC is to choose a firm name. You must offer your company a distinct name that complies with Massachusetts naming regulations.
When you submit your Certificate of Organization, you will formally register your name.
Determine if the name is available in Massachusetts. Make sure the company name you choose isn’t currently in use by doing an online LLC name search.
Examine if your company’s name is accessible as a web domain. You may choose to purchase the URL in order to prevent others from using it.
You must list a registered agent, also known as a resident agent in Massachusetts, when you submit your Certificate of Organization.
A resident agent’s function is to accept legal paperwork for your LLC, such as service of process and tax notifications.
The resident agent of your real estate LLC might be a person or a registered agent service. Although you may act as your own resident agent, many company owners choose to employ a registered agent service.
You must submit the Certificate of Organization with the Massachusetts Secretary of the Commonwealth to register your Massachusetts LLC. This may be done through email, mail, fax, or in person.
An LLC operating agreement is a legal document that defines your real estate LLC’s ownership and member responsibilities. An operating agreement is required for all Massachusetts LLCs.
An operating agreement may benefit even single-member LLCs.
The US Internal Revenue Service (IRS) uses an Employer Identification Number (EIN) to identify and tax firms. It’s essentially a business’s Social Security number.
Following the Formation of a Real Estate LLC
