New investor from NYC: LLC startup questions

[Adrienne Melton]

Greetings BP Fam,

After months of extended lurking the new year seemed like a good time to finally make an intro post. Excited to be here! I’m a new investor living in Brooklyn but will likely be looking out of state for properties due to NYC being NYC and thereby very expensive.

I’d love to try my hand at flipping homes but building a nice passive income portfolio through securing rentals is the end goal. I’m still in the learning phase so I’m of course being inundated by lots of information.

I'm a little shame-faced to admit that I jumped the gun and believed the hype about forming a Nevada LLC a few months ago. I've done nothing with it and as I understand it, having this LLC at all is not necessary if I'm not buying in Nevada which I personally don't plan to. I was also told that I'd have to file as a foreign entity in my home state. I'm the only member in my business, no partners, so I imagine that'd be a determining factor on the necessity of this early on.

That being said, can anyone shed a little light on the following: if one does not plan to buy property in their home state, is the formation of an LLC in that state necessary or is it simply better to form LLCs in whichever state you're purchasing in as you begin to acquire properties? Just want to make sure I'm going about this in a way that's safe and legal but also not doing way more than I have to!

As of now, I'm considering formally dissolving the Nevada LLC or simply letting it dissolve on its own as an attorney suggested to me simply by not paying whatever their yearly fee is. Thoughts?

P.S: I know this question has been turned multiple times on this site but since my case is a teeny bit different with having formed the LLC already I figured I'd put it out there. Thanks in advance & I look forward to meeting everyone!

[Chris Grenzig]

@Adrienne Melton Welcome! I did the same thing with Nevada, definitely don't need it so get rid of it!

Ask your attorney as you're buying a property what entity and where you should file as each state can be different. There is no one size fits all and can change. That's why having a reliable attorney is important.