In yesterday’s blog, I answered Sam’s question about whether to use an LLC or an S corporation for his operating company. Sam has a couple of more questions about setting up his company. The answers could prove useful to many of our readers.
Q: I am beginning training in Robert Kiyosaki's Rich Dad courses in Wholesale Buying in real estate, Lease Options, and Short Sales. What would be the purpose I should put onto the Corporation Application? Would the purpose be simply "To Conduct Real Estate Services for Profit"?
A: The purpose you are suggesting is fine. Or, you might simply say, “Real Estate.” The state asks for the purpose of the business because they will publish that purpose to the world. What do you want the world to think? You want it to be broad enough to cover whatever you might do or you might want to narrow it if your LLC is only going to be used for a very specific purpose.
Q: What do you charge for performing the paperwork for my application for an LLC or an S Corporation? I am a resident of Ohio.
A: While we are happy to do the paperwork to make your S corporation election (the form 2553), I suggest you use an attorney for the LLC or go to www.llc.com. This is a great website with terrific customer service. If you have more than one owner, I strongly suggest you use an attorney to create an operating agreement for your LLC.
Q: Is there a website where I can check to determine whether a particular corporation name is available?
A: Your state website is the logical choice for finding out whether the name you have chosen is available. I would also suggest you go to www.godaddy.com or another URL reservation website to make sure the URL is available if you are planning to have a website for your business.
You can call our office toll free at 866.467.5809 if you would like more information about the price and extent of our services.
Warmest regards,
Tom