Updated almost 2 years ago on . Most recent reply
Forming LLCs for properties in different states?
Hey folks, I'm super new to LLC forming and the whole legalism (pros and cons) of its own. Long story short, right now I don't have an LLC yet but currently have a rental property in Texas and soon will be renting out another one in Virginia. Neither of these is yet under an LLC. I'm curious to hear from a distance investor (or multiple states property owner), or Lenders that are familiar with this matter that should I form 2 different LLCs in 2 different states? Or should I form just one LLC (not sure if this is even possible or legal)? Also.. I understand that I must get a confirmation (or concurrence) from lender that I'll be transferring my personally owned property to an LLC so that it won't trigger a due-on-sale clause when the transferability happen. Thank y'all for your inputs!
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As someone who recently had to form a foreign LLC for an out of state property that I own, I definitely wouldn't do it unless I absolutely have to. The way I did it was I formed the LLC where the property is located and got a certificate of registration so I could have a bank account in the LLC's name in my state.
I could have also formed the LLC in my state (Virginia ) and applied to the other state for authority but it seemed like even more work.
This is the link for Virginia https://www.scc.virginia.gov/. If you do form the LLC call the help desk and ask what steps need to be taken in order to form the domestic LLC.