What state should I start my investment LLC in? Is there any issues with an investment company in "x" state can buy property in "y" state?
I have one investment property in Tennessee, live in Virginia, and just went under contract on a property in Indiana (where I am actively searching for more properties). I am active-duty military and my legal state of residence is TN.
I'm not necessarily looking for specific legal advice, as I realize this is a specific question that needs to but looking for conceptual information on the topic. Thanks all.
@Bo Goebel if your "home base" is in Tennessee, I would set up the LLC there, then register it to do business in whatever other states you are investing in.
Thanks @Bryan O.
Tax incentives make Tennessee a great choice too.
@Bo Goebel I have mine in Virginia as the yearly fees are ridiculously low and I register as a foreign entity in other states. Virginia is pretty good with the laws as well regarding asset protection &if you do it right
@Bo Goebel your properties will be taxed in whatever state they reside. Talk with your CPA to be sure how it breaks out for you and what it will mean.
It is normally advised to set up the LLC in the state that the property is located in; In this case Tennessee.
Before you acquire the property in Indiana - you have the option of registering the LLC to also do business in Indiana or to create a new LLC in Indiana.
Please also acknowledge that Tennessee may have an LLC franchise tax.
Did you get a solid answer on this question?
I am looking in the same state. My homebase is in Colorado. Colorado lets me hold out of state real estate in a Colorado LLC, but I need to check on the other end if TN allows it.
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