Question on holding a property in an LLC out of state

1 Reply

This is my first post, sorry if its in the wrong category. Question regarding purchasing a property in an LLC out of state.

Basically I'm looking to purchase a property all cash, in Indiana, and would like to hold the property in an LLC in Ohio for example that seems to have the following benifits.

- No annual report

- No Annual Fee

- No state income tax (c corp filing for tax not s corp pass thru)

My question is basically, will I need to file biennial in Indiana if i register as foreign entity in Indiana (I assume this would be necessary to have a rental property with income in that state)

I am less worried about the fee's for registering, but more curious about ongoing maintenance.

From my perspective, if i have to spend a bit more money to register as a foreign entity in Indiana, but I don't have to file each year, the extra cost would be worth it to keep this thing low maintenance.

Any thoughts or suggestions welcome.

Thanks!

I'm not in Indiana, but here is part of the answer. These generally apply to all states.
  • An Ohio entity would have to register in Indiana as a foreign entity to do business there.
  • It would also have to file an Indiana tax return if it conducted business in Indiana, including buying, selling, and renting real estate.

Speculating on the filing requirement. I'm going to guess that Indiana imposes all the same requirements on foreign entities operating in the state, as they do on entities created in the state. So you would have to do the same filings.


From the State of Indiana website: "Every business has an ongoing responsibility to file regular business entity reports with the Secretary of State"

https://inbiz.in.gov/business-filings

You'll find more helpful information on the website.

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