What address to use to establish out of state LLC

What address to use to establish out of state LLC

Rental Property Investor · Proctorville, OH · Member since 2016 · 13 posts · 4 votes

Hello

I live in Ohio, but I am right next to West Virginia, and the bulk of my investing will probably be in West Virginia. I purchased one rental property in West Virginia last month and am under agreement to purchase one more. I am starting to consider moving these properties to an LLC for asset protection, a step that I knew was necessary later down the road, but which I punted on while getting started.

I planned to establish an LLC in the state of West Virginia and put the properties in it. However I realized that I need a physical address in West Virginia in order to use to establish an LLC there. What is the best thing to do?

a) Use the rental property I already acquired as the physical address of the LLC (seems like it would be difficult to reliably collect mail there after it is rented)
b) Contract a private company, such as UPS, to provide a physical address in West Virginia for the LLC. I have absolutely no idea how much such a thing would cost (UPS website says to contact the individual store for pricing)
c) Contract a private agency, such as Harbor Compliance, to be the resident agent in West Virginia. I googled "Registered agent in West Virginia" and found Harbor Compliance, their website describes a charge of $99/year for this service.
d) File the LLC in Ohio or some other state and transfer the property physically located in West Virginia to it without otherwise being a registered entity in West Virginia. I understand this to be completely illegal, just making sure that is that correct?
e) Try to get a friend or family member to be the resident agent? Seems like a very bad idea...
f) Don't bother with setting up LLCs for now, perhaps wait later for better economies of scale compared to the cost of procuring an address

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  • David BellPro Member
    Real Estate Agent · East Brunswick, NJ · Member since 2016 · 129 posts · 63 votes
    9y
    The LLC that will hold the property needs to be in the state where the property is. As far as the address, I believe you are referring to a registered agent which is required to be in the state where the LLC is. The RA receives legal notices for the principal of the LLC. There are companies that do this for a small yearly fee.
  • Real Estate Investor · Dumfries, VA · Member since 2016 · 29 posts · 4 votes
    9y
    Roan LaPlante You can have LLC anywhere. You have to request a business permit/license from the state you are conducting business if your LLC is not physically in that state. A registered agent is also required. For example my LLC is filed in Nevada. My LLC is registered with Va and I have registered agent there because that's where I do business.
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