Setting up an LLC for properties in a different state.

[Ryan Antista]

I live in California and will be purchasing properties in Missouri. Should I set up the LLC as a MO or CA entity?

[Basit Siddiqi]

@Ryan Antista

It is usually recommended that you register the LLC in the state the property is in; In this case Missouri.

If you registered the LLC in California, Nevada or Wyoming(states that above posted suggested) you would then have to register as a foreign entity in Missouri because that is the state that you do business in.
If you registered in Nevada and Wyoming - you would also have to pay $$ for a registered agent on a yearly basis.
If you registered in Nevada, Wyoming, California - you may also be required to pay annual fees(if the state requires it).

Now the big issue at play is California is very aggressive in regards to saying that entities do business in their state.
California has indicated that general partners/managing members who live in California and make important decisions in the state are considered to be doing business in California.

You may need to reach out to a CPA/Attorney to see if you are considered to be doing business in CA and having to file a CA LLC tax return(CA 568).