Buying Rentals in Ohio from Texas using Series LLC

3 Replies

Would like to hear your experience with Ohio rentals being in Texas. I am primarily trying to figure out the TAX and ENTITY implications:

1. Can you use a Texas Series LLC name instead of your own name when buying in cash ?

2. Are there any special entity filing/registration to be done in Ohio where the assets are located ?

3. How do you add each rental in different series as you buy them over time? Do you have to go to your lawyer for each addition?

4. The rental income for the Series LLC will flow through to individual returns for Ohio state return ?

Any entity operating and/or owning property in Ohio, must be registered in Ohio.

Rental Income earned in Ohio, must be reported to Ohio.

Based on the rest of your questions, it sounds like you were "sold" a series LLC by a "guru". They subsequently did not tell you how it operates.

Sorry to say, but they are grandiose overkill for most real estate investors.

Originally posted by @Kaushik Dhar :

Would like to hear your experience with Ohio rentals being in Texas. I am primarily trying to figure out the TAX and ENTITY implications:

1. Can you use a Texas Series LLC name instead of your own name when buying in cash ?

2. Are there any special entity filing/registration to be done in Ohio where the assets are located ?

3. How do you add each rental in different series as you buy them over time? Do you have to go to your lawyer for each addition?

4. The rental income for the Series LLC will flow through to individual returns for Ohio state return ?

 1. Yes

2. Register as a foreign entity in OH

3. Whoever created your Series LLC should have advised on this, its a simple process, don't necessarily need a lawyer, but YMMV.

4. Depends, talk to your CPA.

Thank you all. To keep things simple, I will create LLCs in Ohio to hold 2-3 Ohio properties in each instead of filing my Texas series LLC as foreign entity in OH. My attorney and CPA all seem to be agreeable to this approach.