Real Estate Agent · Enumclaw, WA · Member since 2020 · 10 posts · 1 vote
I'm under contract for a vacation rental property in Florida. I need to register my LLC as a foreign entity in Florida. The paperwork requires a "designated agent". Where do I find or what kind of business person serves as a "designated agent"?
Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes
4y
Why paying two states registration when you can pay only one?
To insulate liability between all my assets, I am not putting multiple properties in the same LLC, so I am creating a new LLC per per property.
Except maybe for CA where LLCs are expensive and the use of trust is probably a good option, I am creating the LLC in the state where the property is located. This LLC is a single member, member managed LLC.
All my single member LLCs are then owned by a holding WY LLC. This allow me to get only one taxable/reporting entity, I also have the anonymity provided by WY, and most important the excellent charging order protection from WY that you don't have in many state.
I don't see any good reason for foreign registering an LLC in another state. You pay two states registration and filing, in case of legal action a creditor will probably argue that he can choose the rules of the weakest state. There is more opportunities for you to screw up somewhere and weaken the company veil...
@Doug Wolff a registered agent or designated agent is simply for service of process. There are companies that will do this for you for an annual fee. If you search for Registered Agent services you will find more than you need.
Attorney · Slidell, LA · Member since 2016 · 322 posts · 179 votes
6y
You should really consider forming a Florida LLC to own the property. Foreign LLCs create all kinds of problems in the courts, who much prefer local LLCs.
@Sean, what kind of problems have you seen with foreign LLC in local courts? Can you give an example, thanks!
Hi Miguel. I'm very curious on this topic as I was about to form a foreign LLC (based in NJ), registered in VT for a STR property in VT. Did you ever find out about the issue with Foreign LLCs?
Attorney · Dallas, TX · Member since 2021 · 15 posts · 4 votes
4y
Resident agents are another name for "designated agent". It may be easier to form the entity in Florida since you'll be subject to the laws there anyways.
Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes
4y
Why paying two states registration when you can pay only one?
To insulate liability between all my assets, I am not putting multiple properties in the same LLC, so I am creating a new LLC per per property.
Except maybe for CA where LLCs are expensive and the use of trust is probably a good option, I am creating the LLC in the state where the property is located. This LLC is a single member, member managed LLC.
All my single member LLCs are then owned by a holding WY LLC. This allow me to get only one taxable/reporting entity, I also have the anonymity provided by WY, and most important the excellent charging order protection from WY that you don't have in many state.
I don't see any good reason for foreign registering an LLC in another state. You pay two states registration and filing, in case of legal action a creditor will probably argue that he can choose the rules of the weakest state. There is more opportunities for you to screw up somewhere and weaken the company veil...