I recently purchased my 1st duplex in Valdosta, Ga. I currently live 30 minutes away in Florida. Do I need to set up my LLC in Fl or in Ga? I plan to grow & buy my next duplex in the 4th quarter of 2018 & plan to add more each year there after. Which type of LLC will be best for me with the new tax plan? Any & all info in very much appreciated. Make it a great day!
Brad, I'm not an attorney, but I have always heard that it is best to set up your LLC in the jurisdiction where your property is located, unless you are trying to get the benefits of a specific state's corporations law (Delaware, Wyoming, etc. - ask your attorney). We have several properties in Valdosta, and our LLC is set up in Georgia. Remember - Since you've already purchased the property (in your own name?), once you set up the LLC, you have to actually transfer it to the LLC or the LLC will be of no benefit to you.
Again, I am not an attorney or accountant, but my understanding of the new tax plans is that they give preferential tax treatment to any "pass-through" income, and so long as you form a pass through entity (LLC taxed as a partnership, for example, and not a corporation that is taxed at the entity level) you should be good. However, with real estate you really shouldn't be paying taxes on the property for several years due to teh depreciation anyway. If you do any significant rehab, you really won't be paying taxes for a while.
Thank you very much @Thompson Gooding for all of that information. Bye any chance do you know of a good Real Estate Attorney you can recommend? Have a great night!
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