When buying out of state, where to set up LLC/look for CPA

[Andrew Merewitz]

I live in nyc and will be buying properties to rehab and hold and rent in Jacksonville, FL in next month or so. I'm going to be setting up a LLC to do this with. Is there a reason I should set up LLC in either Florida or NY? I also would like to find a CPA now so I can make sure I'm doing everything right from the beginning to maximize tax breaks, should I look for one local or would it be better to find one from Florida? Does it make a big difference either way?

[Basit Siddiqi]

@Andrew Merewitz

State of LLC Formation
It is normally advised to create the LLC in the state that you will be holding the real estate; Florida in this case.

If you created the LLC in New York - you would be required to register the LLC in Florida; increasing your total costs.

Please also be advised that it can be costly to form an LLC in New York.

Location of CPA
The important aspect of looking for a CPA is that he/she understands the taxation of real estate.
Technology(emails, phones, skype) allows you to communicate properly through an accountant eventhough he/she may not be in the same city as you.
Florida does not have a state income tax.