LLC which state is the best

[Rahul Bhatt]

I am planning to put my real estate properties in LLC. Which state is good I am in California and Properties I am buying are in Ohio . i know in any case I have to pay $800 is california per year to maintain this entity.

I have decided to go for LLC because of following

1. I have partner and it is much better to have an entity instead of paying for Two umbrella insurances

2. I want to build this entity so when I am ready to go big I can use Its credit or income to get a loan.

3. Business Expense management.

I an considering Ohio or Nevada. because there is no recurring cost in both state. Any help or suggestion will be Greatly appreciated.

[Paul Bojinov]

@Rahul Bhatt you don't need to register your LLC in CA if you don't plan to do business in the state. So save your $800 a year.

You will have to register your LLC in the states you are doing business in. However you can form it in any state. Most will recommend NV as the state with most protection. Just keep in mind that if your properties are in OH and a lawsuit is filed against you in that state it will not make much diferance where you formed your LLC. The court will follow OH law.

I assume you are looking into an LLC as a form of asset protection. Just get an umbrella insurance. That will be your best protection and if you really need asset protection there are attorneys that can help you with that. I'm not one, so don't take this as a legal advise.