Do you have to register as a foreign entity with a Parent LLC?

Do you have to register as a foreign entity with a Parent LLC?

Member since 2019 · 10 posts · 0 votes

Do you have to register as a foreign entity, to have 1 LLC (from another state) own the LLC in your state? Or can you register them separately and have the details worked out in an operating agreement?

Also, do you have to capitalize the parent LLC?

The answer might seem obvious, but this is my first rodeo. Anyone so kind to answer, would be greatly appreciated :) 

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  • Scott SmithPro Member
    Attorney · Austin, TX · Member since 2014 · 1k+ posts · 932 votes
    7y

    This is still a very loaded question. I am assuming you are talking about a group of LLC, using one of them to function as a parent LLC, but you could also be referring to a Series LLC. If you can clarify your structure I might be able to contribute more to your question.

    You can form an LLC in a separate state from the property that is within it, but you will end up paying the filing fees and additional foreign filing fees. If this is something you don't want to deal with you can transfer the property into a land trust and list the LLC as the beneficiary. This article goes into more detail on the strategy.

    Tag me if you clarify your question a bit more.

    This is not legal advice, just my opinion as a real estate investor.

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