Out of State Investing: LLC in Home State or Investing Location?

[Kealan Hobelmann]

Hi all, I currently live in Philadelphia and am planning on investing in the city over this next year under an LLC with a partner. However, I'll likely be moving to Maryland in the next year where my business partner currently lives. We plan on continuing to invest in Philly even after the move. Would it make more sense to open an LLC in PA (where we will be investing and where I currently live) or in MD (where my partner lives and where I will be moving)?

Of note, it looks like we would need a PA address to have a PA LLC. Obviously I can use my home address for the next year, but not sure what I would do in a year.

Thanks in advance for the help!

[Ed Burk]

@Kealan Hobelmann - As a Lender, traditionally we would need a 'Certificate of Foreign Qualification" if your LLC is doing business outside the registered state. “Foreign qualification” refers to registering your business with the secretary of state office of another state. It enables your company to legally pursue growth opportunities across state borders without having to incorporate a new business entity. It’s typically the first step in expanding a business to a new state.