In North Carolina, 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 company is sued, an LLC is a distinct legal organization that may safeguard your personal assets (vehicle, home, money). LLCs also provide credibility and tax-saving possibilities.
In North Carolina, you may form a real estate LLC by filing Articles of Organization with the NC Secretary of State. In North Carolina, forming a real estate LLC costs $125.
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 North Carolina naming regulations.
When you submit your Articles of Organization, you will formally register your name.
Determine if the name is available in North Carolina. 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.
A registered agent must be included when you submit your Articles of Organization.
The role of a registered agent is to receive legal papers such as service of process and tax notifications on behalf of your LLC.
A person or a registered agent service might serve as the registered agent for your real estate LLC. Although you may serve as your own registered agent, many company owners choose to employ a registered agent service.
You must complete Form L-01 – Articles of Organization with the North Carolina Secretary of State to register your North Carolina LLC. This may be done online or in the mail.
Consider incorporating your real estate LLC as a S Corp. As an IRS tax classification, a S corp may give certain tax advantages to your real estate firm.
An LLC operating agreement is a legal document that defines your real estate LLC’s ownership and member responsibilities.
An operating agreement may benefit even single-member LLCs.
You may include conditions in your real estate LLC operating agreement as long as they do not violate North Carolina law.
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
