How to start a property management company. Step number two, get incorporated. Starting a property management company is similar to setting up any other type of commercial enterprises. You need to establish a legal entity for your business. Normally that would be either limited liability corporation which is an LLC, or an incorporated business. Anyway, you can also hire an attorney or you could do it yourself online.

If you notice I have some links that is on this slide for business filings comm legal zone.com incorporate.com in ink file.com these are all good websites to go to if you decide and choose to incorporate the business yourself. Now, there's a lot of liability involved in branding property management companies, so it is highly advisable that you incorporate your new business there are a various ways of creating your company and just registering it, such as the C Corp, the S corporation, the LLC, and also the limited partnerships. Now, by incorporating, you limit your assets to whatever you put into that Corporation, as long as a lawyer cannot pierce the corporate veil, then your personal assets are protected. So now what do I mean by piercing the corporate veil? If a court finds that the individuals and parties are executing business as themselves, while stating that their actions are the actions of the corporation and not of themselves, then the court can decide that the individual and the parties are the same as the corporation and therefore there's no difference, which means you will get sued.

Now the judge may also allow the lawyer representing an opposing party for to pierce the corporate veil. For the purpose of seizing personal assets of individuals and parties trying to hide behind the corporation, we've found out that corporations can actually reduce their personal and business taxes if done correctly. So for example, a C Corp. And that actually has a higher risk because of the double taxation problems. So let's say you are a Canadian, and you're coming to do this is in California, unfortunately, you're going to get double taxation because of the fact that you're going to get taxed in Canada, you're going to get taxed here in the United States. So just kind of keep that in mind. Now, did you have the S Corp. S corp passed through the taxes to the shareholders, so there is no chance for double taxation.

The profits will be taxed as a personal income tax instead of a business income tax. Now with the shareholders, the shareholders Not a lot of people like to think the shareholders could be your mother, your husband, your sister, your father. But these are the people that's going to be found on your articles in corporations when you do foul your corporate entity as to whatever you choose it to be. Now when creating the name of your property management business, for marketing purposes, even though this is not the marketing lecture, but for marketing purposes, I would highly suggest a name that's obvious that a person could tell what type of company it is, without any thoughts of hesitations or assumptions to it. For example, like my name is Ebony Caldwell. So I would do something like color property management that represents my name, but at the same time, the key word is property management, Chicago property management.

Well, Chicago is a big city, I am in Chicago and again as property management. Again, these are keywords, affordable property management, affordable can register for a couple different reasons. One, maybe because you're a public You mentioned a company is focusing primarily on subsidized housing. Maybe you're saying you have affordable apartments. But anyway, go these are keywords that represent exactly who you are and the type of property management company you have. The reason why this is very powerful, because if you are a new company, you may not, you know, gonna have business right away.

So the name of your property management company that you have incorporated, it should contains common online keywords that individuals would potentially search for. So make sure you incorporate your business with a name that are public keywords. You know, when individuals are searching for property management companies, or for real estate management competition, you want to make sure they're looking they can find you. Please keep in mind if you choose to add another name to your business, maybe because you added another entity to your business. Such as, you know, buying wholesale properties or such as focus on specifically subsidized properties. You want to make sure that if you decide to add another name to business, just know that you can always do a DBA certificate which is doing business as so you're not losing that name that represent who you are or represent the type of business it is.

But it also allows you to get a second E for your business and link them together. Now, to incorporate a business or form an LLC, you will need to register your business with your state. You will need to know the name of the Registered Agent. A Registered Agent could be again, it could be your mother but every time you incorporate a business you should have a Registered Agent. The person responsible for sending receiving official documents and this person must have a physical address and not a peel box in that state. That is your registered agent.

You can be the Registered Agent also. But I wouldn't suggest that but you could. If your company will sell stock, you will also need to know how many shares of stock will there be initially. And some other information, you will also be required to pay for the incorporation application when you apply online. Now, as far as stock and I'm being honest, I wish to my company as a corporation, and I did need to actually put the amount of stocks on air and to make it simple I did 100 you know, 100 shares so stocks and you probably say, well, Anthony, what made you choose that? Because I was looking at the actual nother incorporation nother business that I hit register and my attorney registered this particular corporation for me, and my attorney hit 100 shares of stock.

So guess what, that's what he put in. He has been doing doing this business for a long time. They invest exactly what I put online, so just know you could put them out of stock You know that you want, but I had 100 shares of stocks online. Now, the links that I have uploaded, like I said, are some great websites to visit should you decide to incorporate your business online yourself. These websites will give you step by step information on how to incorporate your new property management company. So, once again, the second step to getting your property management company going is to come up with a good name and just get yourself incorporated