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Your real estate investing business checklist, item by item
Q: Which licenses and permits should I expect for a real estate investing business?
A: Think of this as a trail map for your real estate investing business. Not every marker applies to every traveler, so we check which ones are on your path. It also lists the personal license or trade license of the person doing the work, because a business license alone does not cover that.
1. Business license: A business license for a real estate investing business MAY ask whether you buy, remodel, rent or resell property, how many units you manage, and whether tenants or the public visit your address.
2. Home occupation permit: A home occupation permit MAY apply because paperwork, signs and a laptop live at your house, normally with limits on client meetings, signs in the yard and tools stored in the garage.
3. Professional or trade license: Real estate salesperson license: Individuals who negotiate purchases or sales for others may need a salesperson license supervised by a broker before earning commissions.
4. Professional or trade license: Property manager license: Managing rental properties belonging to other owners may require its own personal license or a broker-supervised management credential.
5. Real estate broker license: Anyone who arranges sales or rentals for others, instead of investing for themselves, may need a professional license with exams and education.
6. Rental registration: Landlords may need to register each rental unit and show it meets basic safety rules.
7. Proof of liability insurance: Evidence of coverage for property damage and tenant injuries may be requested with a rental business application.
8. Rental property statement: A short list of the buildings you own or manage may be asked for to match the activity description.
9. Employer registration: Hiring changes the list: an employer account, payroll tax setup and workers' compensation insurance MAY join the pile before the first paycheck.
10. Company papers: Depending on how you want to own and name the business, an LLC, a DBA or a tax ID number may come next; we prepare those too.
One service fee covers more than one license. If you order a business license and it turns out you also need another one, for example a home occupation permit, we obtain both for the service fee of the business license. Annual tax and application fees charged by the govt are not part of our service fee: we find the applications and fill them out for you.
Why people love this line of work
Property is solid and you can walk through it, which is why seasoned investors love the smell of sawdust and the sound of a front door that finally latches.
Picture it
Priscilla signs a stack of papers for Tallow Street Holdings and discovers that the pen is the only thing in the deal that does not need a permit.
A cautionary example
A contractor you hired leaves a half-finished roof and a lien notice, and an LLC helps keep the dispute attached to that property alone.
The numbers behind it
Business code (NAICS): 531390 (Other Activities Related to Real Estate). This page lists 10 paperwork items for a real estate investing business, and each one is marked as something you MAY need, since we confirm which apply.
Tip: Keep a separate bank account for each property so repairs and rent never mix with your grocery money.
Real estate: the only business where people proudly say 'it just needs a little work' about the roof.
Ready when you are: start your order and we will find out what applies to your real estate investing business, fill out the applications and keep the paperwork moving. |