Winding down the week with five quick questions, answered in about five minutes (and no election talk whatsoever...):
1. Can I establish a holding company LLC?
Yes. Establishing a holding company LLC is common for real estate and business clients. This structure allows an LLC to own other LLCs. Typically, clients establish separate LLCs for each property or entity, all owned by a central holding company.
2. How soon can I open a bank account for a new LLC?
The general process:
- Register the LLC with your state.
- Obtain an EIN from the IRS.
- Open a bank account (may require the operating agreement).
Note: Starting January 1, 2025, LLCs must file Beneficial Ownership Interest (BOI) within 30 days of setup.
3. Can I use a trust to own my LLC?
Yes, if allowed by state law. Trusts can be LLC members or managers, providing management flexibility. This setup varies by state, so check local regulations.
4. Should I draft my will before moving to Minnesota?
Generally, it’s best to draft your will now. Estate plans are valid across states, though adjustments may be needed for local advantages, like informal probate in Minnesota.
5. Do I automatically inherit property from my father?
Inheritance depends on property ownership. If jointly owned with a “right of survivorship,” the co-owner inherits it. Without this, consult the deed and any will.
