I am looking to get started in Real Estate investing and was trying to obtain an LLC but I don't know which state to apply for one. I live in Indiana (on the border of Ohio) and am looking to buy property in Ohio. I wanted to use my business for tax write offs so I wasn't sure if it had to be in my state I reside in for that reason but if I do that can I still purchase in Ohio?

I am not a tax professional BUT you need to actually be doing business in the state you have an LLC in in order to do write offs. There also are some down sides to buying investment property in an LLC such as your lender requiring a commercial loan instead of a 30 year fixed Fannie/Freddie. You can always quit claim from personal to LLC though which most people do.

Why not just buy property in Columbus and then form an LLC to quit claim into? Have you talked to a CPA?

Thank you for the feedback. Honestly I am finding that while I was saving money to be able to do this, I probably allocated my efforts in the wrong areas (knowledge wise). I should probably reach out to a CPA. Looking to buy in Delhi (near Cincinnati) because I know the area (just moved from there). Thanks again!

@Kristen A Dekok I am in KY and bought property in Ohio. You should work with a real estate lawyer but I applied for LLC in KY and then registered as a foreign agent in Ohio.

Thank you. That is what I thought but I wanted to be sure. Do you have any recommendations for a real estate lawyer? 

Conference call a lawyer and CPA at the same time for the best answer for your personal situation.  It will be a one time fee and save you tons of time and effort trying to figure it out.

I have LLCs formed in GA and VT and I’ll live in SC.  Makes no difference whatsoever.

You mention having an LLC in order to write off expenses. I didn't get an LLC until I went over 23 apartments. I didn't even have separate bank accounts. The only reason to get an LLC is for reduction in risk but even in that case you could just use an umbrella policy until you get much bigger.

Originally posted by @Stephen DeThample :

Conference call a lawyer and CPA at the same time for the best answer for your personal situation.  It will be a one time fee and save you tons of time and effort trying to figure it out.

Thank you. I appreciate you taking the time to respond.