Registering a Wyoming LLC in a state you invest In

[Sainath Muntha]

Hello Real Estate Investors!

I have a question regarding registering llc’s as foreign entities in the state you are conducting business in.

For example, Is it necessary to register the llc in the state that I am conducting business in (say Texas) when the llc was created in another state (say Wyoming)?

There seem to be hefty fees associated with that. Some fees are one time, others are one time + annual

Wondering if I would have to do that with every llc i would create in Wyoming and operate in other states?

Is the anonymity and the additional asset protection worth the hassle? Should I just create the llc in the state I am investing in?

Thank you in advance for your advice!

[Guy Gimenez]

You wouldn't register a Wyoming LLC in Texas, you're creating an LLC in Texas that is owned by the Wyoming LLC. You must also understand how to "run" and LLC in order to get any benefits from it should you be sued. Getting with an asset protection attorney is your best bet. Depending on your investment strategy / goals, there may be other options rather than creating multiple LLC's. But insurance companies have one goal in mind...accept policy premiums and pay out as little and as infrequently as possible. All the insurance in the world is of little help if you have to sue the insurer to pay a covered claim. Ask me how I know.