A Houston foreclosure defense lawyer helps their client defend against a foreclosure. It is the goal of the defense lawyer to apply United States and Texas foreclosure law to the client’s situation. The lawyer’s knowledge and expertise helps their client possibly save their home or delay foreclosure.

When it comes to foreclosures, Houston really isn’t any different than any of the other states. With the increase in job losses and decreasing of house values all over the world, not to mention the country, it is understandable how families are finding it hard to keep up with mortgage payments. Whether you have lost an income due to unemployment, have lost wages due to sickness or injury, or if you simply found your other credit commitments to be too overwhelming, you may be able to find help with a Houston attorney.

A foreclosure occurs when the homeowner is no longer able to keep up with mortgage payments. Layoffs, work slowdowns, reduction in hours and other losses in income have created financial hardship. When this occurs, the lender has an interest in minimizing further losses by repossessing the property. This begins the foreclosure process, leaving many homeowners feeling without options.

A Houston foreclosure defense lawyer steps in and advocates in behalf of the client facing foreclosure. The lawyer stops the foreclosure process through a series of delaying tactics in order to buy time for the homeowner. This delay helps the homeowner find additional financial resources in order to save their home. This delaying tactic may also give the homeowner an opportunity to find alternative living arrangements.

A Houston lawyer’s knowledge of local foreclosure laws is a must. This knowledge should also be coupled with an awareness of programs available to assist homeowners. A foreclosure defense lawyer understands that the process of foreclosure serves no one’s interests. Communities are blighted by the devastation brought on by foreclosures. The lawyer’s expertise and competency in the area of foreclosures helps save homeowners and neighborhoods.

Some friends of mine recently put their home on the market and found that the estate agents couldn’t officially declare the house for sale until an energy performance certificate or EPC had been provided for the house. Much like the now standard home information pack, the ‘EPC’ has become a legal requirement. Since October 2008, whenever a building is built, sold or rented out, an ‘EPC’ has become a legal prerequisite.

There is a sliding scale in operation that rates buildings according to their energy efficiency. This scale runs from A to G with a home rating of A being the most efficient and of course G being the least energy efficient. British homes have been averaging an energy efficiency rating of D until recently. The EPC should now be provided by Accredited Domestic Energy Assessors, along with a detailed report explaining what can be done in a property to make it even more energy efficient.

Generally there are two main types of energy performance certificate. A Commercial EPC and the more common one when selling a home, is the Residential Energy Performance Certificate. A Display Energy Certificate is a third that is used in slightly different circumstances.

A brief outline of the residential energy performance certificate, you can find below.

Residential Energy Performance Certificate

Now required by law for homes bought, homes sold or homes let The residential ‘EPC’ is valid for 10 years and is reusable within that time EPC should be commissioned by landlords - Landlords EPC Applicants must be permitted to inspect the EPC A free copy should be provided to a tenant prior to any agreement.

As my friends found out, you won’t be able to sell your house without these certificates being present, so it is vitally important to know what an ‘EPC’ is as they can have an impact on major life decisions.

The process of eminent domain, or condemnation, as it is also referred, is a very trying process. Not only have most people never heard of eminent domain or understand that the government has the constitutional right to take your property for public projects so long as they pay you just compensation, but they are ill equipped to spot errors in the state’s offer and negotiate a fair settlement amount for their property. This puts the government at a great advantage from the get go. In order to at the very least give you, the landowner, some understanding of condemnation so you have a voice in the sale of your property, I’m going to outline the usual process of an acquisition by eminent domain.

Before I begin, let me point out that this is not a process that you, as a landowner, should undertake yourself. Though you may be able to negotiate the sale of your property to the government and get some additional compensation, you will likely be leaving thousands of dollars out there because you weren’t aware that an item was compensable. The government has appraisers, right of way agents, and acquisition agents who are seasoned veterans at acquiring property under the threat of eminent domain. You should have someone on your side with the knowledge and experience to counter-punch. Only a good eminent domain lawyer can do that.

Now that that’s been said, the easiest way to do this is with an example. Let’s say that you live in Seattle, Washington and your house is located on the corner of what is fast becoming a busy street. Seattle, in an attempt to control traffic in the area, has decided to add an additional lane and make the middle lane a turn lane. In order to this, however, they are going to need additional right of way - this means they are going to need your property.

At this stage, in our example, the Seattle Department of Transportation will usually have a series of public meetings to let the landowners know about the plans, let them know about the need for additional property, and hear any specific concerns they have with the preliminary designs. In many cases the government is willing to listen and tweak their design if something pops up they didn’t anticipate.

Once the meetings have ended, the right of way plans will become finalized and the real journey begins. After a crew comes out and stakes or paints the new right of way boundary an appraiser hired by the city of Seattle will come out and appraise your property. In this case, because only a strip of property is being taken, they would likely determine what all of your property was worth before the taking and what the property you have left after the taking was worth. The difference would be the amount of just compensation.

When the appraisal is complete, Seattle would have their acquisition agents come out and present the offer of just compensation. At this point it would be imperative to hire a Seattle eminent domain lawyer. They can review the offer (and in Washington Seattle would pay for it) and provide guidance on anything that was missed in the appraisal. After the review your lawyer would draft a counter-offer to the city and a back and forth would begin.

In most cases, at some point the landowner and government reach an agreed to price for the property (sometimes well in excess of the original offer). If an agreement is reached the two sides execute a purchase contract, sign deeds, and the property is sold, much like when you purchased your property in the first place.

A quit claim deed is a document that provides for complete revoking of a property by a person. When the deed in signed, the person is essentially giving up all claims on the property in question and is transferring it to another person. For the deed to be fruitful and effective, the person signing the deed on the property must own the property in the first place. Hence, signing a deed will be ineffective if you are not in direct ownership of the property.

The signing of a deed should not be taken lightly and an expert lawyer should always be consulted before any such document is signed. This is because a quit claim deed is non-reversible and unless the other person (to whom the claim went) signs a similar transfer to you, the property will be out of your hands forever.

A quit claim deed should only be used when the owner of the property wants to relinquish all claims to the property, including any ownership and financial claims. However, contrary to the popular belief, signing a deed cannot get you out of mortgage claims. This is potentially a dangerous situation where you might lose both ways. If you are part of a note that makes you liable to paying the mortgage on the property, you cannot get out the of paying the mortgage by signing the deed. If there are other people in joint ownership with you, they should get the loan refinanced in their name, excluding you completely. Or else, you might end up in a situation where you are liable for paying the mortgage but you will not have any rights over the property you are paying for.

If you want to gift a part of your property to your partner or friend, you can do so by setting up a living trust. The living trust is a much more flexible than a quit claims deed. Once a deed is executed legally, you will have no rights over the part of the property that you will be giving away.

A quit claim deed should only be filed when you are sure that you want the property to be completely handed over to another person without any conditions whatsoever. The signing of a deed needs to be done in a fully legal manner and only after proper counsel. The document needs to be signed by the owner of the property first. Then for it to stand as a binding document, there should be witnesses to the entire proceeding. The receiving party will need to counter-sign the deed. The deed then will need to be notarized at a local office that holds the power to notarize the deed.

Once all this is done, the transfer will be final and binding. It is very hard to change the situation and hence this deed is highly permanent in nature.

Eminent domain is generally the ability of the government to take private property for public purposes. It is a power granted by the Fifth Amendment of the United States Constitution, and exists to ensure the public has streets, sewers, electrical lines, and much of the rest of the public infrastructure that exists today. But, if the government is going to take your property, they must pay you “just compensation.” Just compensation is determined by figuring out what a seller would pay and a buyer would buy if there wasn’t the threat of the government taking the property. It sounds easy, but becomes difficult when applied in real life, particularly with temporary construction easements.

Before I go any further I want to stress to everyone reading this article that eminent domain is not something you should try to negotiate on your own. It is a very technical area of the law, and determining how to get the right amount of compensation for your property takes a lot of experience. Please don’t read this article and try to negotiate the sale of your property to the government on your own. Hire an eminent domain lawyer.

In many cases, the land to be used for the road, for example, is not the only property required to complete the public project your property is needed for. For example, if the Seattle Department of Transportation were widening Mercer Street, they would need not only the property for the actual road, but some property outside of that area to move their construction equipment, store supplies, and create what will eventually be the new street. This property outside the actual construction area is often referred to as a temporary construction easement, since once construction is complete the property is returned to the landowner.

But how is this valued? Traditionally it is valued in one of two ways: a set rental rate is established and applied to the amount of time the property is to be rented; or a percentage of the overall property value is taken and multiplied by the amount of time the property is needed. In either case, these numbers can vary widely and can be very far from the true value of the land that is lost for that time.

For example, let’s say that while widening Mercer Street, the Seattle Department of Transportation’s construction easement would shut off one of the driveways to your gas station, making it nearly impossible for traffic to get in and out of your business. The true value of the easement is much higher than the result using the above two methods. It may be the entire value of the income that could be derived from the property during the time the construction easement is being used.

Another problem with these methodologies is that it is often difficult to determine what an acceptable rental rate is or what an acceptable percentage of property value is. For example, as a renter of property in Seattle near Mercer Street, would you expect an 8% rate of return or a 10% rate of return? This difference could have a great effect on the final amount of just compensation.

Determining the value of temporary easements is difficult. It is not an exact science. If you are a landowner whose property is being taken for a temporary construction easement or other kind of temporary easement, please contact an eminent domain attorney today to help.

If you own or manage rental properties, it’s crucial that you learn your landlord tenant law. Knowing your responsibilities as a landlord is the only way to ensure that you are able to carry them out. Similarly you will want to understand your tenant’s rights so that you won’t have them exploiting you unfairly.

What are Your Crucial Landlord Rights and Responsibilities?

While a landlord has a right to receive rental payments on time from the tenant, the landlord has an obligation to maintain his rental property in habitable condition by complying with all relevant housing, building, and health codes. He must also respond to tenant requests for repairs and maintenance within a reasonable time.

In addition, the tenant must be notified at least 24 hours in advance before a landlord can enter the rental property for an acceptable purpose such to collect rent or show the property to a potential buyer. The only exception when the landlord needs to enter the unit in case of an emergency such as a fire outbreak.

At the beginning of the tenancy, the landlord should complete a walk through taking note of the condition of the rental unit.

An accurate accounting of a tenant’s security deposit must also be kept according to legal requirements. The deposit has to be returned on move out, unless there is a reason for you to withhold part or all of the deposit due to rent owed or damage beyond normal wear and tear.

If you believe that a tenant is violating the terms of the rental agreement or the landlord tenant law, you must provide written notice to the tenant and keep a copy of the notice for your own records.

If it becomes necessary to evict a tenant, you must follow all laws and ordinances in this process. It is never acceptable for you to lock a tenant out of a unit without following proper procedure even if the tenant is behind on his rental payments.

Finally make sure that you provide important contact information for both routine and urgent purposes. Make sure you provide the name, address, and telephone number of the landlord or rental office.

What are Your Important Tenant Rights and Responsibilities?

When it comes to landlord tenant law, tenants also have a part to play. Rent has to be paid up on time each month and you have to keep rental property clean and tidy. If the rental unit has a private yard, be sure it is clear who is responsible for maintaining it. In general, a landlord must maintain areas that are shared in common with other tenants.

For the occupant’s safety, as well as the maintenance of the unit, all smoke detectors, carbon monoxide detectors and fire extinguishers must be maintained in good repair. The landlord should provide these initially but the tenant may be responsible for changing the batteries and testing the equipment occasionally.

If the landlord must enter the premises, the tenants should be cooperative and allow access, provided the landlord informs him at least 24 hours in advance.

Tenants should also treat their neighbors courteously and avoid excessive noise and disturbances especially at night.

Finally if a tenant is leaving the rental unit for an extended period of time, it’s important for him to inform the landlord. There are a number of things that could go wrong in a tenant’s absence and the landlord will want to be aware that the unit is unoccupied.

In case of theft or damage to the unit, a landlord is not be responsible for replacing the occupant’s belongings. This is why it’s a good idea to purchase renter’s insurance.

Fortunately, many disputes can be avoided as long as both parties have a clear understanding of landlord tenant law. Start off on your tenancy on the right foot with a clear rental agreement and a solid understanding of the law.

Step 1: Write a letter to your tenant giving them the appropriate notice to pay the rent or face Eviction. The timeline is typically between 3 to 5 days if the Tenant is not paying rent. This letter is called Notice to pay rent or quit. Send the letter by Certified Mail so that you can prove it was sent later in Court. Don’t forget to give the Tenant the chance to pay up and stay, otherwise, you will have to draft a whole new letter. Typically, the 3 or 5 day notice will only be useful if you have a non-paying Tenant. If you are Evicting the Tenant for some other reason you may need to give them up to 60 days notice depending on the State.

Step 2: You will need to go to your State’s Judiciary Website or Library. Look for forms that are up to date and are titled similar to the following: Petition for Summary Possession or Complaint for Eviction. You may also need to include an Order or Writ of Possession form. Get these forms filled out and ready to file with the Court before you send your letter in the step above. If the Tenant does not pay (cure the default) within the time you alotted to them by law, go ahead and drive down to Court, approach the information desk or window and ask for the proper window to file your Complaint for Eviction or Summary Possession and Writ. Don’t be shy to tell the Clerk that you are “Pro Se” (without lawyer) and if you have filed all the documents you need. They may or may not help you. Many Judicial Websites also have self-help guidelines for landlords and tenants.

Step 3: Take the copy of the file stamped (stamped copy returned to you by the Court Clerk) Complaint or Petition for Eviction or Summary Possession and have that served on the Tenant. You can look in the phone book for a “Sheriff” or “Process Servers” and they can serve your Tenant with the paperwork and notice to attend court for as little as $25.00

Step 4: Show up on the Court Date. At the Court date the Judge will typically ask the Tenant if they agree or disagree with the Eviction. If they agree or don’t show up a judgment will be entered against them. You may need to file additional forms such as: Motion for Default Judgment, Entry of Judgment or Judgment if the Tenant does not show up and you want to try for your money owed. If your Tenant disagrees with the rent owed or possession issues many Courts will send you both to Mediation right on the spot, while others will set another date for trial in order to determine if you have the right to possession and to rent in arrears.

Are you interested in buying or selling property in New Zealand? If you are, the best thing for you to do is to not sign anything without having consulted a local NZ lawyer first. People now go into transactions involving property without legal advice and you can, too, if you’re willing to risk your life savings. Buying or selling property is probably the biggest transaction you’ll ever get into that involves a huge chunk of your money.

Are you that bold to enter into such a transaction without having legal assistance that can provide you with the appropriate safeguards? Having legal advice before signing documents pertaining to conveyance of property is the wisest move for you to do, to make sure that your present and future interests are well protected. Further, having a lawyer present right at the beginning of the transaction makes it possible to act promptly if things go awry. He can take immediate action and help you avoid litigation, except only when it’s an absolute necessity.

How else can a local New Zealand lawyer help you when you’re thinking of conveying your property? If you are buying, you can ask your lawyer about the different home loans available and their implications on you and your finances. If you’re selling, he can give you advice on the different methods of selling and which one is appropriate for you. He can also help you negotiate for the best deal possible. He can also remind you whether you should obtain a builder’s report or a Land Information Memorandum which should be secured from the local Council.

Are you convinced yet? Perhaps the next question on your mind is how to find a property lawyer in New Zealand?

A simple answer is to go online. There are many New Zealand lawyer search sites on the internet. Just specify the area of expertise involved that needs legal assistance, and you will be given a list of lawyers to choose from.

Another option is to grab the local NZ Yellow Pages. There are lots of lawyers listed there and you can take your pick. Their area of expertise is also provided to guide you with your search.

You can also check the local NZ Bar association. Take note that this Bar has nothing to do with an entertainment joint. It’s a legitimate organization of lawyers in your locality. They can similarly give you a listing of lawyers practicing property law in the New Zealand town you are purchasing in.

If you work in a company that houses its own counsel, you can pay him a visit and see if he can refer you to a property lawyer. Being a lawyer himself, surely he knows someone. If not, he surely has a network of lawyers whom he can ask from.

Lastly, don’t forget to seek help from family and friends. They must have had brushed with the law some time in their lives and could refer you to a lawyer. If not them, someone they know perhaps? Either way, this referral system will at least point you to the direction of a Kiwi property lawyer who has been tried and tested.

Energy Performance Certificates (EPCs) are quickly becoming established as part of every day life for landlords, letting agents, property owners, property agents, business agents, solicitors and others. However, there is still a great deal of misunderstanding about why & when EPCs should be commissioned, the benefits/pitfalls and what is the right price to pay.

In 2007 the UK government implemented EU Directive 2002/91/EC and launched the Energy Performance of Buildings Regulations. The regulations are designed to reduce CO2 emissions of buildings. An EPC shows the asset rating of the building as an A to G energy rating, with G being the least energy efficient.   The Energy Performance Certificate is accompanied by a Recommendation Report, either as a separate document accompanying Non-Domestic Energy Performance Certificates or as an integral part of the Domestic EPC document, setting out basic ways in which the building’s energy efficiency could be improved. For more specific, targeted energy efficiency improvement recommendations for your business, a full Energy Audit should be commissioned.

Different regulations cover England & Wales, Scotland and Northern Ireland but impose broadly similar requirements, with some differences including implementation dates. The regulations allow for a range of sanctions to be imposed, including fines of up to 5,000 pounds for each breach.

There are several different types of EPC, including those required on construction for new residential builds. The two most common types of EPCs needed are Domestic EPCs relating - as the name suggests - to purely residential properties and Non-Domestic EPCs relating to Commercial premises. Non-Domestic EPCs are more commonly known as Commercial Energy Performance Certificates.

If a commercial premises - or a home in the social or private rented sector - is to be sold, or let to a new tenant, then an EPC must be supplied free of charge to the prospective buyer or tenant by the landlord when the buyer or tenant is given written - including electronic - information about the property or when the prospective buyer or tenant views the property, whichever occurs first and before any contract is entered into.

For residential sales, the EPC usually forms part of the Home Information Pack in England & Wales and part of the Home Report in Scotland.   Note that Energy Performance Certificates are valid for 10 years and can be re-used as many times as needed within that period so long as no major alterations have taken place, i.e. it is not necessary to commission a newer Energy Performance Certificate every time there is a change of tenant.

Discerning buyers and tenants may lose interest in a property if the EPC reveals a poor energy rating, or they may wish to negotiate a lower purchase price or rent if they face costs in improving energy efficiency or for higher energy bills.  Larger corporations that will be drawn into the Carbon Reduction Commitment will, of necessity, need to be extremely choosy about the energy efficiency of commercial buildings they buy, rent or renew a lease for, since they face potentially huge bills for every tonne of CO2 emissions resulting from the use of energy in their buildings.

The same legislation has also introduced the need for organisations with operational control of air conditioning plant with a cumulative effective rated output exceeding 12kW to have an Air Conditioning Assessment carried out by an accredited assessor.

Furthermore, buildings with a total useful floor area over 1,000 square metres that are occupied in whole or part by public authorities and by institutions providing public services to a large number of persons and therefore frequently visited by those persons, must display a Display Energy Certificate (or in Scotland, an Energy Performance Certificate). The DEC must be displayed in an area clearly visible to the public.

The cost of obtaining Commercial Energy Performance Certificates, Air Conditioning Assessments and Display Energy Certificates has fallen over the past 12 months and discounts for multiple orders can often be negotiated. As with any product or service, it really does pay to compare prices.

Introduction

This article is tailored for those wishing to form an LLC for purpose of holding real estate investments. The first thing investors should know about limited liability companies is this: get one. There are lots of good reasons. The main ones are (1) minimizing personal liability and maximizing asset protection; (2) organizing your investment business; and (3) tax benefits including one-time taxation of members’ profits.

Company Identity

A limited liability company, like a corporation, is a distinct legal entity with a life of its own. It has its own rights and duties. It files its own tax returns. However, it requires maintenance and continued respect for its independent status. It may be your company, but it must still be treated at arms length for legal purposes. You must undertake certain actions to maintain its separate character, and it is vital that you do so if you wish to avoid personal liability for the actions of the company or its agents and employees. The reason is the legal doctrine of “piercing the corporate veil.” Unless the company pays its state and federal taxes, maintains a bank account, conducts regular meetings, keeps records, and the like, then in the event of a lawsuit, a court may disregard the company’s existence and proceed directly against the members/owners personally. It will be alleged by the plaintiff’s attorney that the company is a sham and nothing but the personal “alter ego” of its owners, designed to shield them from the consequences of wrongful conduct.

Omitting company “maintenance” is the single biggest mistake that investors make concerning their companies. They do the initial paperwork, pay a filing fee, and then use the company name in transactions without ever doing another thing to maintain the form and substance of the company’s existence. This approach provides only the illusion of personal liability protection. It will not protect you from a clever plaintiff’s lawyer who is determined to get a judgment against you personally. Remember, he or she will be looking for deep pockets and hard assets, wherever they can be found.

A new lawsuit is filed every 1.3 seconds. Literally millions of lawsuits will be filed this year. Many will award huge damages for such things as serving coffee that is too hot. In this legal environment, proper asset protection is a serious matter.

Where to Form the Company

Consult your attorney to determine whether an LLC best meets your needs. For reasons of simplicity and economy it is recommended that new investors start with a Texas LLC. There should be no rush to get chartered in another state since Texas has favorable LLC laws. Nevada and Delaware are also good choices, although out-of-state LLC’s are required to pay a stiff fee and maintain a registered agent with a physical address (ie., not a PO box) in order to do business in Texas.

After establishing your LLC, you may wish to file a “DBA” certificate in the counties in which you operate, showing the name under which you will be publicly doing business. This further preserves anonymity, an important element in asset protection.

Members

The owners of an LLC are referred to as “members” rather than shareholders or partners. An LLC may be formed by only one person. Members may be individuals, partnerships, other LLC’s, corporations, and/or any other type of legal entity. LLC’s generally operate through a “managing member” although officers may also be elected if the company agreement (formerly called the bylaws) so provides.

Ideally, the personal name of a member should never appear on any deeds or leases, and a tenant should never write a check to a member personally. Do business using the name of the LLC (or its assumed name - DBA - if you have obtained one) and use a dedicated operating account. Avoid any form of personal guaranty on legal documents. Property management should always be conducted by your LLC.

Asset Protection

A primary purpose of an LLC is to provide asset protection for its members. Although there is no such thing as a “bulletproof” plan to avoid personal liability or protect assets, the rule is this: the more fences a plaintiff and his attorney have to jump, and the more money they have to spend in order to get to you personally, the better protected you are. One way or another, plaintiffs have to pay their lawyers, and that means either cash or contingent fee - and few good lawyers will take a real estate fraud case on a contingent fee, particularly if they know they will have to penetrate a bona fide LLC before they can get to any real assets.

It is critical that your attorney draft the LLC’s company agreement so that it discourages creditors from ever attempting to seize your membership interest or the membership interest of a fellow member. A membership interest in an LLC is not a protected asset under the Texas homestead laws - so provisions should be included in the company agreement to the effect that any creditor succeeding to a membership interest by means of collection or execution on a judgment will not be able to vote that interest; not be able to serve as a manager or officer; not be able to direct that assets of the company be sold; and not be able to alter or reduce the company’s ability to do business. A related article on our website, Asset Protection in Texas may be useful to you.

Separating LLC From Personal Affairs

An LLC is also a useful device for organizing your business, particularly in separating your business from personal affairs. Failing to do this is a common mistake of novice investors and can create legal and accounting problems. Running business income and expenses through your personal account may not be illegal, but it can complicate your defense if you are sued. It will be alleged that you “commingled funds.” Again, this may not always be contrary to law, but it will arouse the suspicion of the judge and jury and may result in your defense failing the “smell test.” This sort of error can also result in your being held personally liable for damages. Why risk it?

The Company Name and Other Formation Details

In setting up an LLC, one of the first things to consider is a company name. Unfortunately, the easy ones tend to be taken, so you will need to be creative. When you have an available name, contact your attorney and tell him who the original members are going to be and what percentage of ownership each will have. Generally, LLC’s have a managing member or co-managing members. Who will be serving in these capacities? You will also need to choose a registered agent with a physical address (not a PO Box) in Texas. The registered agent will receive official company mail from the Secretary of State and the Comptroller and be the person who is served with process if the company is sued.

State and Federal Taxes

An LLC differs from a conventional corporation in that it avoids “double taxation,” ie., taxation on corporate profits and then taxation again when dividends are paid to the owners. Income passes through to the individual members of the LLC with only one taxable event. In this way, an LLC is treated similar to a partnership for federal income tax purposes. Your LLC will need to obtain a TIN (taxpayer identification number) using an SS-4 form (supplied with our company kit) or the TIN can be applied for online. The TIN will be required to open a bank account for the LLC.

Although Texas does not have a personal income tax, it does have a franchise tax (also called the margin tax) that is imposed on all “taxable entities.” The statutory definition of a “taxable entity” can be found at Texas Tax Code Sec. 171.0002(b)(2), but it includes LLC’s. The margin tax is basically a modified gross receipts tax, although some thresholds and deductions apply. A franchise tax return must be filed annually with Texas Comptroller.

Note that obtaining a TIN and filing tax returns are part of what an LLC must do in order to preserve its status as an independent entity with a liability barrier that protects its individual members.

Moving Property into the LLC

If possible, any investment property you may acquire should be acquired in the name of the LLC. Any and all investment property acquired or currently held in your personal name should be moved into the LLC by means of a general or special warranty deed without delay. Investors occasionally wonder if this is permitted by the lender if there is a “due on sale” clause in their deed of trust. This is usually not a problem. Go to our companion article Due on Sale Clauses in Texas for more information.

Use of Internet Services to Form Your LLC

NO serious businessman or investor would do this. Here is what such services do not provide:

NO comprehensive advice on how to structure your business and investments so as to achieve maximum asset protection

NO attorney to serve as organizer, initial member, and/or registered agent in order to maximize your anonymity

NO sophisticated company agreement that deters creditors from taking control of your company

NO advice on how to move property into the LLC after it is formed

NO advice on how to set up and arrange the LLC’s finances, including setting up LLC accounts, injecting capital, and/or loaning money to the LLC

NO advice on how to maintain the LLC liability barrier to prevent a plaintiff from “piercing the corporate veil”

NO free follow-up questions after the LLC is formed

Additionally, the documents provided by such services are minimal in nature and not adequate for purposes of asset protection.

Summary

Every investor should consider having at least one LLC (although it is not a good idea to form more entities than are useful or necessary in carrying out an investor’s business). For a summary of the core documents pertaining to LLC’s - the Certificate of Formation, the Minutes of the First Meeting of Members, the Company Agreement, and annual and special meetings - see our companion article at our website, LLC Documents in Texas.