How to Name Your LLC (What to Consider for Your Real Estate Limited Liability Company) (2023)

Introduction

If you're setting up a limited liability company, coming up with the name is something that seems to trip a lot of people up.

I can't tell you how many times I've been on the phone with someone and I say, "hey I need a name or two for your limited liability company." And it's just silence.

Naming your LLC names are not that important, but there are a few things to consider naming it.

When it comes to setting up your LLC and it's not a business per se, that is associated with you, do not use your name. That is the number one mistake that I see people make.

Watch this video as I break down what to consider when naming your limited liability company.

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Video

- All right, guys.

Hey, in this video, we're gonna talk about how to.

Name your limited liability company.

All right, let's get started.

(upbeat music) So, if you're setting up a limited liability company, coming up with the name is something that seems to trip a lot of people up.

I can't tell you how many times I've been on the phone with someone and I say, hey, now I need a name or two for your limited liability company.

And it's just silence.

I don't know what to call it.

I gotta talk to my spouse about this.

I have to get back to you.

Hey, names are not that important, but there's some things you should consider when naming it, but for sure, don't get hung up on it, because things can happen.

I mean, I had this one client years ago, was setting up 17 limited liability companies over this person in Oregon, there were two physicians, and they couldn't agree on the names.

Let's say they went months without setting up the LLCs because of names.

And then this, one of the.

Wife, is involved in a car accident.

She.

Wasn't at fault.

She? Actually got hit from behind, and her car was plowed into the other three cars in front of her that had already collided, but she had the nicest car.

She had the S-Class Mercedes.

So everyone sued, her.

And.

At that point in time, they were scrambling trying to get their properties.

Transferred.

And I told him, hey.

It's too late.

Everything could have been protected, but you couldn't decide on some names.

So, when it comes to setting up your LLC, if you're gonna hold, if it's not a business cave per se, that associated with you, do not use your name.

That is the number one mistake that I see people make.

They put their own name down on their LLC.

Clint Coons, Limited, Liability, company.

Now, why the hell would I wanna do that? I mean, unless I wanna brand myself and this company, and myself being associated with it,? If it's gonna hold assets, your name should not be in there at all., I mean.

Part of my strategy is about using anonymity.

Well.

You just went and blew it for yourself by adding your name to the LLC.

Now.

The other thing to consider.

Too, is that if you come up with a name, for example, if you decided, hey, I wanna, we're gonna call this Evergreen Investing.

All right, people get attached to names.

They find one name, and then they wanna go out there, and continue to use that same name.

So you're gonna create multiple LLCs, Evergreen Investing.

What is called EI LLC.

Here's one.

Then.

They come on the Evergreen, Investing One, LLC, Evergreen, Investing, Two, LLC, and so forth, down the line.

And they're, creating multiple LLCs all with the same name.

Now.

First off.

Think of it.

This way.

If you're trying to build anonymity.

Even, though your name's not associated with these entities.

What is associated with all of these entities, that one Wyoming holding company that we have down here, right, here, there's, Wyoming, LLC., So, you've just basically told someone, hey.

All of these entities are really owned by the same guy.

There's, not a lot of research that has to go into this., Because I'm gonna make that assumption.

Whoever's creating them this way.

That's still the same.

Investor.

So you wanna, minimize that to the, do not use this type of naming.

Convention.

Not only is I think giving away too much information to tell someone, hey, E One or EI One, Two, Three, Four, Five, they're, all associated together.

It's confusing.

Who's, it confusing to? Well, number one.

It's confusing to your bookkeeper.

It's, confusing to your attorney.

I've.

Had discussions with people, before.

And I, think I'm talking about Evergreen One.

We have to be talking about Evergreen Four, because he didn't say: Evergreen Four, he just said, Evergreen, the fourth one.

Mike, what, I get all confused about which entity we're supposed to be dealing with.

So.

It makes it harder to communicate with other people.

Not only is it other people, you'll get it screwed up.

And I'm telling you this from firsthand experience, I've been there.

I did this at one point in time, and I will never do it again because of that, because of the confusion associated with that.

So.

In naming your LLC, try to stay away from this type of stuff.

So.

That brings us then to setting it up for the real estate.

Then what do we actually call it if we're not going to be using this type of structure? Like this? Well, what I will tell is you is you can pick any name, you want, but first you have to figure out what you're gonna be using.

If you're gonna be using a land trust associated with it, then watch my video on naming your land trust.

'cause.

That's key here., You wanna make sure those sync up.

What I'll typically tell people is name the LLC after the property address.

So.

If you already have the property, that makes it extremely easy to do.

So.

You would set up your LLC if the property was located on 732 Broadway, then I would set this LLC up with 732 Broadway LLC.

That's.

What I would use.

I know which property is held? There.

Another thing that sometimes I'll put into my LLCs as well, is the state, for example, if it was, I own property in multiple different states.

And.

So when I'm setting them up.

So, when I'm just looking down the line of my entities, I'll, put a designation on here, for example, 732, Broadway, or 732 Broadway, say NC, LLC.

Why do I put NC? Because that tells me.

That is my North Carolina LLCs.

And.

So every time I see, NC, I have the address, and that NC designation tell me which state it's in.

So.

If you invest in multiple states, and you're, setting up multiple limited liability companies.

This is an easy way for you to remember which property is located in which state.

Because, as you buy more, you tend to forget.

I do, I can't keep track of them.

All.

So I use the NC designation on there, or whatever state that you're investing in as a rule of thumb.

Now.

The problem that comes up is for individuals who are setting up LLCs in advance.

So.

This is a common thing that you should do when you're investing in real estate.

If.

You know that you're gonna be buying property, and you know the state that you wanna be investing in, maybe set up one or two LLCs and have them on the shelf.

And.

So you don't own the property yet, but you're gonna be investing in a certain state.

And.

So you can't use the property address.

'cause you haven't, acquired it yet.

And.

The other thing is.

Is you? Wouldn't wanna set up an LLC right in advance of making an offer on a particular property., For example, let's say I was gonna, make an offer on 732 Broadway., So I hop online.

Let's.

Some states such as Wyoming.

You, can create the entity just like that.

So I could have 732 Broadway in five minutes, ready to go.

So, then I make the offer for 732 Broadway.

I've seen this come up before that it throws off realtors and sellers or property because they start wondering.

Why do you have an LLC set up with the exact same name of my property? And? They think something fishy is going on.

So, that you've gotta kind of be leery of coming up with the name before you actually have this property under contract.

So.

Don't make the offer in the name of that LLC, 'cause I've seen it cause problems for people.

So.

It brings me to this point, when you're gonna, if you don't own the property yet, think about it in terms of where you're gonna be investing.

So.

If I knew, I was going to be investing in say, Memphis, Tennessee, and I'm gonna be looking in that area, maybe in a certain county.

Maybe you do something with the combinations of that county in the city.

So again, it's a mnemonic that helps to remember where it's located, but it doesn't have the exact address.

Yet in there., The other thing, you're always free to do is this, come up with any generic name that you want for your limited liability, company.

And, then you can always change it later.

On.

So, after you get the property under contract.

So let's say I started off with this LLC here.

And I just set it up as R and R LLC.

'cause.

They just had to get something set: up, made short and simple.

I've now, I have this property, 1375, Olive, under contract.

And.

They know that I'm gonna be closing on that property.

And.

If it's a residential property, and you're using debt, you're closing in your own name, anyways.

So.

You got plenty of time to do.

This.

It's not like you, have to have the LLC set up to close, unless you're using a portfolio lender.

But in that case.

What I would do is at this point in time, I would amend this filing with the secretary of state to change the name to 1375, Olive LLC.

And.

So if you're doing that.

And, you haven't set up your EIN.

So this is one of the things also, I like to throw out.

When you set up an LLC.

You have to get employer identification, number, 'cause.

You need that EIN to open up the bank.

Account.

Now, it's nice to have all that done ahead of time.

Get your LLC set up, get that bank account set up.

So, everything's, ready to roll when you transfer the property in.

Well.

This is one of those scenarios where maybe you hold off on applying for the EIN.

And.

The reason I say this is that.

If you applied for the EIN under R and R LLC, but then you change the name.

Well, then you're gonna have to update the IRS with that name: change.

And, if you don't wanna, have to update the IRS, and go through that process, then hold off on obtaining the EIN.

That means file.

The LLC.

Get it set up.

You know you're, not gonna close in that LLC, 'cause.

It's a single family property that you're getting a mortgage, on.

So having that bank account, that EIN isn't that critical at this stage.

Once you've got that property under contract.

Then, when you go back, change the name on your LLC.

After, the name is changed with the secretary of state, then file for the EIN, for your entity.

That way.

The EIN, as initially issued, will match the current name of the entity.

I mean, there's no hard and fast rules when it comes to choosing names for your limited liability.

Companies.

But I tend to like to gravitate towards things that give me some indication of where that property is located based upon the LLC name.

And.

If you can use the address in it, even better., What you wanna stay away from is tying your name to that limited liability company, that's owning your real estate.

The.

Only time you wanna use, that is, if you're gonna go out there and try to brand yourself.

All right, guys.

That was my video on how to name your real estate, limited liability, company., Take, care., (upbeat, music).