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Step 1
Choose an available LLC name in your state. When forming an LLC, you need to pick a unique name that no other company is using as this name will appear on all of your documents and banking information.
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Step 2
Find an online LLC vendor or contact an attorney. You can work with an attorney one-on-one or form your LLC online by yourself. You'll need to supply some basic information such as business address and the names and contact information of the owners.
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Step 3
Pick your statutory agent and pay your filing fees. Every LLC needs a registered agent on file with the state, who will be the person to receive legal correspondence on behalf of the company. When applying for an LLC, most states charge a fee that must be paid at the time of filing.
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Step 4
Start operating your rental property under the LLC. The next time you take on a tenant, change all of your rental property forms and contracts to the name of your LLC instead of your personal name. Henceforward, the LLC will be liable for those contracts and you personally will have limited liability.
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Step 5
Start a bank account for your LLC. Your LLC is its own entity, so it can open a business checking account to receive the rental income, pay the rental property expenses and debt service and pay profits to you as the owner.
