Which state do I start my LLC?

[Quinn Williams]

Hi BP family

I live an Illinois but plan to purchase rental property out of state. Do I start my LLC in Illinois or the state I plan to purchase property?

[George Skidis]

There is no need to rush out and get an LLC. Start as a sole proprietor as outlined in your county. Usually you pay a small fee to the County and publish your intent in the local newspaper. After that get a Federal Tax ID and whenever possible use that instead of your Social Security Number.

Always buy the maximum liability insurance amount you can afford on every property. If they offer a million, buy a million. Then get a "Commercial Liability Umbrella Policy" in addition to that. for 2 million or more.

Do everything you can to fix your property and avoid any potential lawsuits in the first place.

In Illinois use a Land Trust to own the property if your mortgage company will allow it.

Good Luck and Good Investing!