Where should I create my LLC if I live in FL and the real estate is in GA?
Hello,
I have a question, which I can't seam to find the right answers in my google search.
I live in FL and like to inquire a real estate in GA under a LLC...should I create a domestic GA LLC or should I create a out of State LLC in FL where I live.
What are the pro's vs. con's? I know I can create the GA LLC with no problems, and the FL LLC would need to be registered in GA, however would I need to pay income tax in GA?
What are ya'll advises? Does anybody created a GA LLC from out of state or a LLC in their own state and owned a property in GA ?
Thank you in advance,
Ender
#1 All Forums Contributor
- Investor
- Virginia
@Ender Aslangeciner
If your property is in Georgia you are paying georgia taxes but speak to your cpa and attorney
In most instances I have been advised to incorporate in state I reside and file foreign entity where I own properties
@Ender Aslangeciner I'm going to preface this with saying that I have a legal background in estate planning and asset protection, however, this is not specific legal advice to you, just my opinion.
Generally you would want to have the property (in this case located in GA) owned by an LLC that is registered/filed in GA. And here's why: the only real way that the property in question would avail itself to the laws/protections of GA would be if it were owned by an LLC in GA. Any potential cause of action (incident that can result in legal action) would happen at the property (which is in GA) and will go before the COurts of GA, therefore, you want to have that shielded, and contained, liability within the entity that is also located in GA. I hope I didn't make too much of that, but basically, the LLC lives where the property lives.
As to the tax aspect of it, I'm not a CPA, so I can't speak to that, but unless you want the LLC to have a specific tax treatment, you can likely pass the tax burden onto your personal returns. I can tell you that LLCs have two sides to them, legal and tax. From a tax view, LLCs can be: 1) taxed as a sole proprietorship, 2) taxed as a partnership, 3) taxed as an S-Corp, or 4) not taxed at all as an entity, this is called being treated as a disregarded entity. I wish this knowledge got out a lot more on BP and the internet.
Because you live in FL, you would want to register the GA LLC in FL as a "foreign entity".
