Incorporate LLC in Wyoming Vs Michigan?

[Kevin Cooper]

Hi BP members,

I'm wondering if anyone can provide some real world practical advice on the pros and cons of registering my LLC in Wyoming (for charging order protection) versus registering my LLC in Michigan (my home state and the place I will be buying properties). My lawyer said that he has had clients with out of state LLCs that had issues getting approved for loans because "they were seen as a suspicious outside company buying up local assets". Thank you for the insights.

-Kevin 

[Joe Hammel]

@Kevin Cooper

If you’re planning on acquiring quite a few properties a common strategy is:

1. Own a Holding company LLC in Wyoming..or Nevada (Favorable laws)

2. Have Michigan LLCs with 1-10 proeprties in them, held by your holding company

Not legal advice, just my personal and a popular strategy in the industry.

We have a write up on LLCs we can share if you’d like.