Investing Across Multiple States
5 Replies
Bo Goebel from Arlington, VA
posted 25 days agoWhat 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.
Bryan O. Investor from Littleton, Colorado
replied 23 days ago@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.
Bo Goebel from Arlington, VA
replied 23 days agoThanks @Bryan O.
Tax incentives make Tennessee a great choice too.
Chris Seveney Investor from Annandale, Virginia
replied 23 days ago@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
Bryan O. Investor from Littleton, Colorado
replied 23 days ago@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.
Basit Siddiqi CPA/Investor from Brooklyn, New York
replied 15 days ago@Bo Goebel
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.
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